Mar 29, 2008

Indian Markets on 28th March 2008

Markets expected to open flat, rise during the day & end in the positive

It was a volatile session on Thursday on account of derivatives expiry. The BSE Sensex closed at 16015.6, down by 0.4% over Wednesday's close. The Nifty opened down at 4783.4 & made an intra-day low of 4777.1. However it recovered well from those levels after remaining volatile for a while, making an intra-day high of 4862.95. However it did witness some selling pressure towards the end before it managed to close flat at 4830.25. The NSE cash turnover stood at Rs. 15456 crores in comparison to Rs. 12475 crores on Wednesday. The market breadth was neutral on BSE with the advance-decline ratio of close to 1:1. Among the sectoral indices, Realty & FMCG outperformed, increasing by 2.3% & 2% respectively. However IT & Bank indices were the major losers, which decreased by 3.1% & 1.5% respectively.

On Thursday, the US markets closed in the negative on account of continuing credit concerns & on account of disappointing results of Oracle. Dow Jones closed down by 1%, while Nasdaq composite closed down 1.9%. The Indian ADRs ended in the red with Infosys & Satyam closing down by 1.9% & 4.2% respectively. Tata Motors & ICICI Bank decreased by 3.4% & 3% respectively. However Tata Communications closed down by 6.4%. However, HDFC Bank increased by 0.7%. Among the Latin American Markets, the Mexican & Brazilian market decreased by 0.2% & 1% respectively. Among the Metal prices, Aluminium, Copper & Nickel increased by 2% & 2.5% & 2.9% respectively, while Zinc decreased by 0.9%. The light crude oil for May increased by 1.6% to settle at $107.58 barrel. The Asian markets are trading in the green with Hang Seng & Singapore Strait indices trading up by 1.7% & 0.6% respectively. Nikkei index is trading flat.

On Wednesday, the FIIs were net buyers of Rs. 558 crores in the cash markets, while they were net buyers of Rs. 302 crores in the F&O markets. Mutual Funds were net sellers of Rs. 432 crores. As per the provisional figures, FIIs were net buyers of Rs. 248 crores in the cash market on Thursday, while they were net buyers of Rs. 271 crores in the F&O markets.

Today, we expect the Markets to open flat, rise during the day & end in the positive. However inflation data needs to be keenly watched as higher than expected inflation data could lead to some minor sell-off.


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