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Markets look to open strong for the third day in a row as Bulls look to come back and regain some lost ground in the past few months. The global cues are good with the US markets ending up and Nikkei joining the gainers club.
Overnight the US markets fared better than expected as the bad news from two dismal economic reports on Core whole sale prices and consumer confidence was over come on IBM’s plan of $15 billion stock buyback, which improved the market sentiment.The Dow closed up 114 points to close the day at 12,684.92 as the Nasdaq gained 0.75 percent at 2345.00.
On the domestic front Reliance Industries Ltd announced that it discovered natural gas in Mahanadi and this will definitely reflect on the stock performance today. The overall sentiment in the market has started improving as we have seen some selective buying in some sectors like Tea which has underperformed the market for the past 12 months. The focus has now turned to Budget 2008 which is due on Friday, ignoring the upcoming F&O expiry. We strongly believe and are nearly certain that Agriculture (fertilizers in particular) and Textiles will be the two key sectors to watch out for in the upcoming budget.
Mid cap and Small cap indices which have underperformed the index for the last 6 sessions made a come back yesterday and are likely to outperform the large caps in the coming days. We see a gain of 1.5 to 2 percent on BSE today with selective buying in sectors which could gain from budget sops. Have a great day.
— Review written by Research Team @ www.indiabears.com
