Market outlook January 23 2008

Jan 23, 2008
Daily equity Market update

INDEX JAN 23, 2008 JAN 22, 2008 CHANGE (%)
BSE SENSEX 17594.07 16729.94 +5.17
S&P CNX NIFTY 5203.40 4899.30 +6.21
SENSEX P/E 22.40 21.21 +5.61
NSE TURNOVER 19267.55 20630.8 -6.61

(Cr)

Commentary on share market :
The equity markets surged today with Sensex recording the biggest single day
gain of over 1200 points. The sentiment was boosted by an emergency cut of 75
bps by the US Federal Reserve on 22 January, 2008. At close, BSE Sensex had
gained 864.13 points whilst S&P CNX Nifty was up 304.10 points. Both BSE
Midcap and Smallcap Indices ended up 8.15% and 3.96% respectively. Net sales
by FIIs were worth Rs. 2,425.70cr on Jan 21,2008. All the sectoral indices
ended in green today with BSE Realty and Power being the top gainers up 11.44%
and 9.81% respectively. Reliance Energy rose 15.94% on BSE after the company
won a railway project worth Rs. 2500cr. Canara Bank surged 7.36% on reporting
26.39% rise in net profit in Q3 December 2007 over the previous year. Nicholas
Piramal India soared 17.48% after the company acquired pharmaceutical business
of Healthline. Pidilite Industries advanced 9.47% on reporting 69.1% rise in net
profit in Q3 December 2007 over Q3 December 2006. Market breadth on BSE
was negative with 1300 advances and 1401 declines.

Outlook for equity market:
The equity market is expected to trade down
Thursday amid negative global cues and the closing of futures contract for the month of january.

RBI Reference Rates
CURRENCY JAN 23, 2008 JAN 22, 2008 CHANGE (%)
Re-$ 39.56 39.73 +0.43
Re-Euro 57.89 57.34 -0.96
$-EURO 1.463 1.443 -1.39
1 YR FORWARD 1.62% 1.50% +0.12
PREMIUM (BPS)

Commentary on Forex market:

* Rupee ended weak as PSU Banks persistently bought dollars for RBI.
* Forward premiums ended off highs as exporters sold forward dollars after
early trade.

Outlook:

Outlook:
Rupee is likely to take a cue from the movement of dollar in the international
markets.