Markets expected to open marginally up & run into profit taking at higher levels

18 Jun 2008 | 10:12
Markets expected to open marginally up & run into profit taking at higher levels

It was another bull-dominated session on Tuesday, as the Indian Markets closed on a strong note. BSE Sensex closed at 15696.9, up by 2% over Monday’s close. After opening flat, the Nifty consolidated for an hour before the bulls started dominating the session. The Nifty witnessed sudden buying activity & gained strength through the day to make an intra-day high of 4664.05 towards the end, before closing at 4653, up by 1.8% over Monday’s close. The NSE cash turnover stood at Rs. 10992 crores in comparison to Rs. 10725 crores on Monday. The market breadth was positive on BSE with the advance-decline ratio of close to 2:1. All the sectoral indices ended in the green with Bank & Realty indices being the major gainers, increasing by 4.3% & 3.9% respectively.

On Tuesday, the US markets closed on a weak note after a major brokerage warned that U.S. banks would have to raise as much as $65 billion in capital to shore up balance sheets weakened by the mortgage crisis. Dow Jones closed down by 0.9%, while Nasdaq decreased by 0.7% The Indian ADRs ended on a mix note with Infosys, Wipro & Satyam decreasing by 0.7%, 0.3% & 0.5% respectively. Dr. Reddy’s closed down by 2.3%. ICICI Bank increased by 1.2%, while Tata Communications increased by 4.2%. Among the Latin American markets, the Mexican market decreased by 1.4%, while Brazilian market increased by 1.7%. The Metal prices closed in the green, with Aluminium & Copper increasing by 0.9% & 0.1% respectively, while Zinc & Nickel increased by 0.7% & 0.4% respectively. The light crude oil for July decreased by 0.4% to settle at $134 a barrel. Today, the Asian Markets are trading in the green with Nikkei & Hang Seng trading up by 0.7% & 0.3% respectively, while Shanghai indices is trading up by 2.8%.

On Monday, the FIIs were net sellers of Rs. 533 crores in the cash markets, while they were net buyers of Rs. 58 crores in the F&O markets. As per the provisional figures, FIIs were net buyers of Rs. 142 crores in the cash market on Tuesday, while they were net buyers of Rs. 951 crores in the F&O markets.

Today, we expect the Markets to open marginally up & run into profit taking at higher levels. Among the sectoral indices IT is looking weak & even Banks & Realty could run into some profit taking after sharp run up over the last two trading sessions.