Sensex to continue its rally

The Sensex is expected to continue its rally, after surging 215.36 point or 1.53% to 14,295.50, on 19 June 2007 on short covering and strong response to the follow-on public offer (FPO) of ICICI Bank. Cues from global markets will also help the sentiment.

Asian markets were trading higher today, 20 June 2007, with Nikkei 225 index gaining on automakers Toyota Motor Corp. and Nissan Motor Co., while South Korea's Kospi index dropped after hitting a fresh intraday high. Japan's Nikkei gained 81.68 points or 0.45% at 18,245.29.

Hong Kong's Hang Seng (up 0.50% at 21,691.73), Taiwan's Taiwan Weighted (up 1.15% at 8,671.86), Singapore's Straits Times (up 0.27% or 9.72 points at ,639.27), also edged higher. However, South Korea's Seoul Composite lost 0.40% at 1,800.56.

Wall Street posted small gains on 19 June 2007, as investors found solace in declining Treasury yields but remained subdued after Best Buy Co.'s lackluster profit forecast and a drop in new home construction. The Dow Jones Industrial Average (DJIA) rose 22.44 points, or 0.16%, to 13,635.42. The blue-chip index was buoyed largely by GE, which rose $1.22, or 3.2%, to $39.29.

Broader stock indicators also edged higher. The Standard & Poor's 500 index rose 2.65 points, or 0.17%, to 1,533.70, and the Nasdaq Composite index rose 0.16 point, or 0.01%, to 2,626.76.

As per the provisional data, FIIs were net buyers of Rs 171.71-crore equities, while domestic institutional investors (DIIs) sold shares worth a net Rs 32.98 crore on Tuesday, 19 June 2007.

Oil prices steadied on Wednesday, 20 June 2007, as traders waited to see if a threatened strike in Nigeria would cut its crude exports and whether gasoline inventories in the United States have built as forecast. London benchmark Brent crude edged 3 cents lower to $71.81 a barrel today.