The market may recover from Tuesday’s 168 points, fall tracking firm Asian markets and with data showing a surge in FII inflow. But volatility may prevail ahead of Thursday (25 January)’s expiry of January 2007 derivatives contracts.
FIIs stepped up buying on Monday 22 January. FIIs were net buyers to the tune of Rs 320 crore on 22 January compared to their Friday (19 January)’s inflow of Rs 76.80 crore. There has been sustained buying by FIIs over the past few days, which followed their substantial sales earlier this month. FIIs have been net buyers in seven out of the last eight trading sessions.
As per provisional data, FIIs were net buyers to the tune of Rs 127 crore on Tuesday 23 January, the day when Sensex had lost 168 points. FIIs were net buyers to the tune of Rs 30 crore in index-based futures on that day. They were net sellers to the tune of Rs 510 crore in individual stock futures on that day.
After trading hours on Tuesday, Tata Motors reported 11.5% growth in net profit in December 2006 quarter to Rs 513.17 crore from Rs 460.23 crore in December 2005 quarter. The key result today is that of housing finance major HDFC. Four brokerages expect a between 20.1% to 27.1% growth in HDFC’s Q3 net profit to between Rs 341.80 crore to Rs 361.70 crore compared to a net profit of Rs 284.52 crore in December 2005 quarter.
Asian stocks rose on Wednesday, with Japan's Nikkei nearing a 6-1/2-year high. A more than 4 percent surge in oil and rising gold and base metals prices boosted commodities-related stocks, sending Australia's resource-heavy main index to a record high and pushing Hong Kong's Hang Seng to a new peak.
US stocks gained on Tuesday as a spike in crude oil prices lifted shares of energy companies, including Exxon Mobil Corp., while strong profits from United Technologies Corp. gave investors a reason to buy aerospace stocks. The Dow Jones industrial average gained 56.64 points, or 0.45 percent, to end at 12,533.80. The Standard & Poor's 500 Index added 5.04 points, or 0.35 percent, to finish at 1,427.99. The Nasdaq Composite Index inched up just 0.34 of a point, or 0.01 percent, to 2,431.41
Oil dipped back below $55 a barrel, after racing nearly $2.50 higher on Tuesday as the United States announced plans to build up its emergency crude reserves and as colder weather pushed up demand in the world's top consumer. NYMEX crude for March delivery edged down 7 cents to $54.97 a barrel.