The market may remain edgy due to a mixed trend across the Asian markets, and lack of cues from the US market, which remained closed on account of Christmas yesterday. China and Hong Kong markets were up 2.12% and 0.51%, respectively, while Japan’s Nikkei had lost 0.07%. Even Singapore’s Straits Times was 0.05% in the red, whereas, South Korea’s Seoul Composite had dropped 0.51%.
A lower closing of the US market on 22 December 2006 (Friday) will also keep the market here on tenterhooks. The Dow Jones had closed at 12,343.22, down 0.63%, while the S&P 500 and the Nasdaq had lost 0.53% and 0.61% to close at 1,410.76 and 2,401.18 respectively that day.
However, the market may derive some inspiration from the fact that FIIs were net buyers of equities worth Rs 264.80 crore on the Indian bourses,on 22 December 2006 (Friday). This was a result of purchases worth Rs 1,666.50 crore and offloading to the tune of Rs 1,401.70 crore in the Indian equities market. The country’s premier index, the BSE Sensex, had climbed a steep 87 points on Friday, closing at 13,471.74. NSE’s S&P CNX Nifty rose 37.65 points, to end at 3,871.15, the same day.
Volatility is expected to remain high ahead of the expiry of December futures contracts on 28 December 2006 (Thursday). Participation by FIIs is also expected to remain low as most fund managers would have proceeded on a Christmas vacation, which will last the New Year.