The market may remain range bound amid concerns that investors may pull out funds from the secondary market to invest in IPOs which are scheduled to hit the market later this month. Reality major DLF is mopping up between Rs 8750 crore and Rs 9625 crore at the proposed price band of Rs 500 - Rs 550 per share. DLF IPO opens for subscription on 11 June 2007 and ends on 14 June 2007. ICICI Bank had, on 15 May 2007, filed a draft prospectus with Sebi to seek approval for raising Rs 17500 crore through an equity issue in the domestic and overseas market.
Asian markets were mixed on Wednesday, 6 June 2007. The Shanghai Composite Index in China was up 1.3% at 3,817 extending Tuesday (5 June 2007)'s strong intra-day rebound. Tuesday's recovery in Chinese stocks had materialized on rumours that the government would soon issue a policy statement designed to restore investor confidence. The Shanghai Composite Index has fallen more than 10% from a record high since Chinese authorities hiked a stock-trading tax a week ago to cool a market that had almost tripled in value over the past year.
US stocks edged lower on Tuesday, 5 June 2007, after comments from Federal Reserve Chairman Ben Bernanke and a strong reading on the service sector suggested the central bank has little reason to lower interest rates. The Dow fell 80.86, or 0.59%, to 13,595.46, after earlier falling more than 100 points. Broader indexes also retreated. The Standard & Poor's 500 index fell 8.23, or 0.53%, to 1,530.95, while the Nasdaq composite index shed 7.06, or 0.27%, to 2,611.23. Bernanke said inflation was still a major concern.
As per provisional data, FIIs were net sellers to the tune of Rs 148 crore on Tuesday, 5 June 2007. Domestic institutions were net buyers to the tune of Rs 48 crore on Tuesday.