Yesterday Market Summary

Last trading day: Thursday, 12 November

Flat global cues and profit booking saw a weak session for our market today that saw a selloff at close. The market saw a temporary bounce in the afternoon on account of good IIP data but sold off later. Sensex shut shop at 16696, down 153 points and Nifty at 4952, down 51 points from the previous close. CNX Midcap index was down 1.39% and BSE Smallcap index was down 0.27%. There was heavy profit booking in realty, metal and banking stocks while telecom stocks saw a breather thanks to good October subscriber numbers. The market breadth was negative with advances at 480 against declines of 763 on the NSE. Top Nifty gainers includedHCL Technologies, Idea Cellular and Suzlon while losers were DLF, Unitech and ICICI Bank.

Sensex could touch 20000 by end 2009. Nifty has formed a strong base around 15000-16000 levels. Investors on the sidelines will come into the market. Indian fundamentals are solid and market is likely to outperform. S&P 500 has a target of 1200 by end 2009.

 If Nifty breaks below its 50 DMA (Nifty level of 4888) then it will be a false breakout and market could head lower. Top picks in banking space, PSU: BoB,PNB, Central Bank, Allahabad Bank, in private banks:Yes Bank and HDFC Bank. In pharma: Lupin, Dr Reddy'sand Piramal Healthcare, in FMCG: Dabur, ITC andColgate.

Liquidity is the key driver for the market in the near term and earnings upgrades are now possible. We are bullish on India's economic outlook that is driven by domestic demand. Indian market is attractive for the medium to long-term and FII participation is likely to increase.