Markets expected to open gap up following positive global cues & consolidate at higher levels

06 Aug 2008 | 10:25

Markets expected to open gap up following positive global cues & consolidate at higher levels The bulls were back with a bang on Tuesday as the Indian Markets rallied smartly to end the session on a strong note. The BSE Sensex closed at 14961.1, up by 2.6% over Monday’s close. The Nifty opened flat & remain volatile till noon, making an intra-day low of 4376. However, post noon, strong buying was witnessed, which pulled the Nifty to a high of 4515.2 before it closed at 4502.9, up by 2.5% over Monday’s close. The NSE cash turnover stood at Rs. 17293 crores in comparison to Rs. 13532 crores on Monday. The market breadth was positive on BSE with the advance-decline ratio of close to 2:1. Among the sectoral indices, Banks, Realty & Auto indices were the outperformers, increasing by 6.7% & 6.6% & 4.1% respectively. However, Metals & consumer Durables were the major losers, which fell by 1.9% & 0.2% respectively. U.S. stocks soared on Tuesday after the Federal Reserve signaled that it is in no rush to raise interest rates and oil prices tumbled further, spurring the Dow and the S&P to their best day in four months. Dow Jones & Nasdaq increased by 2.9% each. The Indian ADRs ended in the green with Infosys, Wipro & Satyam increasing by 3%, 4.9% & 1.7% respectively. ICICI & HDFC Bank increased by 15.5% & 11.6% respectively, while Tata Communications increased by 5%. However, MTNL was down by 1.6%. Among the Latin American markets, the Mexican market increased by 1.9%, while Brazilian market increased by 1.6%. Among the metal prices, Aluminium & Copper decreased by 0.4% & 1.7% respectively, while Zinc & Nickel decreased by 3% each. The light crude oil for September decreased by 1.8% to settle at $119.2 a barrel. Today, the Asian Markets are trading in the green with Nikkei index trading up by 2.2%, while Shanghai is trading up by 1.2%. On Monday, the FIIs were net sellers of Rs. 401 crores in the cash market, while Mutual Funds were net sellers of Rs. 301 crores. As per the provisional figures, FIIs were net sellers of Rs. 398 crores in the cash market on Tuesday, while they were net buyers of Rs. 222 crores in the F&O markets. Today, we expect the Markets to open gap up following positive global cues & consolidate at higher levels. However intra-day profit taking at higher levels cannot be ruled out. Among the indices, Banks, Realty, Capital Goods & IT are looking good and could outperform.