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Tuesday, January 16, 2007

Market may remain firm


The market may remain firm with profit-taking expected to cap the upside after the latest steep surge. From 13,362.16 on 10 January 2007, the Sensex has gained 767.48 points (5.7%) to 14,129.64 by 15 January 2007. The downside will be limited due to strong Q3 results. After trading hours on Monday, TCS reported Q3 results at the top end of analysts’ expectations. The key result today is that of Bajaj Auto.

FIIs have resumed buying on the bourses after their recent heavy sales. FIIs purchased shares worth a net Rs 207 crore on 12 January. They had pumped in Rs 159.20 crore on 11 January. As per provisional data, FIIs were net buyers to the tune of Rs 304 crore on Monday (15 January), the day when Sensex had risen 73 points. They were net buyers to the tune of Rs 527 crore in index-based futures and net sellers to the tune Rs 153 crore in individual stock futures that day.

The earnings season has had a sound start with Infosys, TCS, HCL Tech, HDFC Bank and UTI Bank unveiling strong numbers.

Asian stock markets traded near landmark peaks on Tuesday, but moves were mixed in a narrow range. Key benchmark indices in Japan, Singapore, South Korea and Taiwan were up between 0.25 - 0.34%. Key benchmark indices in Hong Kong and South Korea were down between 0.04 - 0.22%. US markets were closed on Monday.

Nymex crude was down 54 cents at $52.45 a barrel on Tuesday.