The market opened on a positive note but soon slipped into red and extended its losses in early trade. Infosys Technologies and Larsen & Toubro were major losers while Tata Steel and Grasim Industries were major gainers from the Sensex pack. IT and capital goods stocks declined. The market breadth was positive.

At 10:20 IST, the 30-share BSE Sensex was down 139.44 points or 0.88% at 15,693.74. At the days low of 15,689.37 Sensex lost 143.18 points in early trade. At the days high of 15,896.09, the Sensex rose 63.54 points in early trade.

The broader based S&P; CNX Nifty was down 15.15 points or 0.32% at 4,771.10.

Japans Nikkei edged 0.99% lower in cautious trade today, 4 April 2008, ahead of US jobs data later in the session that will provide fresh clues on the world's largest economy. Stock markets in China, Taiwan and Hong Kong were closed today for the Tomb Sweeping Day holiday.

The market breadth was positive: on BSE 807 shares advanced as compared to 701 that declined. 42 shares remained unchanged.

The BSE Mid-Cap index rose 0.11% to Rs 6,394.03 and BSE Small-Cap index down 0.01% to 7,839.23.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries was flat at Rs 2,393.15.

IT stocks declined after yesterdays surge. Infosys (down 2.21% to Rs 1,488), Satyam Computer Services (down 1.12% to Rs 423.25), Wipro (down 0.74% to Rs 432.10) and Tata Consultancy Services (down 0.11% to Rs 882.15) edged lower.

Capital goods stocks extended losses. Bharat Heavy Electricals (down 2.16% to Rs 1,716.90) and Larsen & Toubro (down 0.84% to Rs 2,830) edged lower. Suzlon Energy rose 0.29% to Rs 272.90.

Mahindra & Mahindra (down 1.36% to Rs 635), Hindustan Unilever (down 1.38% to Rs 240), ITC (down 1.2% to Rs 205.50), HDFC (down 1.39% to Rs 2,413), HDFC Bank (down 1.23% to Rs 1,310.10) edged lower from Sensex pack.

Grasim Industries (up 1.74% to Rs 2,605.50), Ranbaxy Laboratories (up 1.09% to Rs 451.70), Tata Steel (up 0.7% to Rs 664.20), Reliance Communications (up 0.51% to Rs 516), Hindalco Industries (up 0.56% to Rs 171.70) edged higher from Sensex pack.

As per provisional data, foreign funds sold shares worth a net Rs 393.41 crore on Thursday, 3 April 2008. Domestic funds bought shares worth a net Rs 265.39 crore.

Foreign institutional investors (FIIs) were net buyers of Rs 132.39 crore in the futures & options segment on Thursday. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 248.96 crore. They sold index options worth Rs 86.22 crore. They were net sellers of stock futures to the tune of Rs 28.70 crore and sold stock options worth Rs 1.66 crore.

US stocks edged up on Thursday, after a report that Merrill Lynch & Co does not need to raise more capital eased fears of a deeper credit crisis and offset concern that monthly jobs data would point to a recession. The Dow Jones Industrial Average gained 20.20 points or 0.16% at 12,626.03. The tech-laden Nasdaq Composite index rose 1.90 points or 0.08% to 2,363.30.

Meanwhile, the Bombay Stock Exchange (BSE) today launches the trading of Sensex-based futures on the US Futures Exchange (USFE) in Chicago. The contract will have a notional value of $40,000 and a tick value of $10. The clearing and settlement will take place through The Clearing Corporation, Chicago.

Stock-specific activity may rule the roost depending on the guidance given by company managements for FY 2009 at the time of announcing Q4 March 2008 results. IT bellwether Infosys Technologies kickstarts the earnings reporting season on 15 April 2008.

Prospects of further monetary tightening by the Reserve Bank of India (RBI) following a surge in inflation is a cause for concern at a time when the already high rates are pinching the domestic industry. The surge in inflation to a 14-month high in mid-March 2008 has triggered fears that RBI my raise cash reserve ratio (CRR). An increase in CRR would suck out liquidity immediately pushing up the cost of funds and thereby curbing demand. The government will today release inflation data for the year through 22 March 2008.

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