Market to head higher

The market is expected to stay rise, after profit booking in the earlier three trading sessions (6 – 8 June 2007), as cues from global markets turned positive.

Asian stocks started the week on a upbeat note, with Japan's Nikkei 225 Average tracking higher as investors bought Toyota Motor, Matsushita Electric Industrial and other blue chips after data showed the economy grew at a faster pace in the first quarter than originally thought. Hong Kong's Hang Seng gained 155.02 points or 0.76% at 20,664.17. Japan's Nikkei rose 0.47% at 17,863.24. Taiwan's Taiwan Weighted (up 0.66% at 8,355.67), Singapore's Straits Times (up 1.25% at 3,535.21) also gained.

In Friday's session, 8 June 2007, the Dow Jones industrial average showed its biggest point gain in more than two months, and the Standard & Poor's 500 index crossed back above the 1,500 mark.

The Dow Jones surged 157.66 points, or 1.19%, to 13,424.39. Broader stock indicators also jumped. The S&P 500 advanced 16.95 points, or 1.14%, to 1,507.67. It was just last month that the index crossed above the 1,500 mark for the first time in nearly seven years. The Nasdaq composite index gained 32.16 points, or 1.27%, to 2,573.54.

The response to the DLF IPO, which opens next week, may dictate the trend, it being a large IPO. Reality major DLF is mopping up between Rs 8,750 crore and Rs 9,625 crore at the proposed price band of Rs 500 - Rs 550 per share. DLF IPO opens for subscription on Monday, 11 June 2007 and ends on Thursday, 14 June 2007.

Over the next few days, the progress of the July-September monsoon will hold key. The weather office said in April 2007 that this year’s monsoon was likely to be 95% of the long-term average, with a 5% margin of error. The annual monsoon is vital for India’s economic health as it is the main source of water for agriculture, which generates more than a fifth of the gross domestic product.

As per provisional figures, FIIs were net sellers to the tune of Rs 974.78 crore on 8 June 2007, while Domestic Institutional Investors (DIIs) were net buyers worth Rs 739 crore on that day