Tuesday 4 March 2008

Better opening, choppy day in store

The Indian Market is likely to have a positive opening, as the cues from the Asian markets are in favor. On Monday, the Indian market closed with heavy losses on the back of heavy selling pressures across the sectoral indices. The market tumbled as the insurer American International Group Inc posted a record loss that led to the worries of more write-downs in the pipeline. The market opened on a sad note tracking the weak cues from the global markets and kept on hovering in the negative territory throughout the trading session. From the sectoral front, all the indices closed in red. The BSE Sensex closed lower by 900.84 at 16,677.88 and NSE Nifty fell by 270.5 points to close at 4,953. We expect that the market may remain range bound during the trading session.

On Monday, the US market was closed marginally lower. The Dow Jones Industrial Average (DJIA) closed lower by 7.49 points at 12,258.90 along with NASDAQ closed down by 12.88 points at 2,258.60 and S&P 500 index closed flat at 1,331.34.

The major stock markets in Asia are trading firm. Hang Seng is trading higher by 198.38 points at 23,783.35 along with Taiwan Weighted trading up by 166.79 points at 8,429.66 and Japan''s Nikkei trading at 13,086.66 up by 94.48 points. Singapore Strait Times trading marginally higher by 4.52 points at 2,931.07.

Indian ADRs ended in negative. Patni Computers fell by (5.28%) along with Infosys (1.82%), Satyam (1.64%). HDFC bank and ICICI Bank dropped by (4.97%) and (3.01%) respectively.

The FIIs on Monday stood as net seller in equity. The gross equity purchased was Rs3,800.90 Crore and the gross debt purchased was Rs0.00 Crore while the gross equity sold stood at Rs4,045 Crore and gross debt sold stood at Rs0.00 Crore.

Therefore, the net investment of equity reported was (Rs244.10) Crore and net debt was (Rs0.00 Crore).Today, Nifty has support at 4,881 and resistance at 5,048 and BSE Sensex has support at 16,432 and resistance at 17,118.