Subdued Asian markets may trigger profit taking

The market is expected to consolidate after three straight days of rally. The Sensex rose 87.29 points or 0.61% at 14,499.24, on Thursday, 21 June 2007. From 14,080.14 on 18 June 2007, the Sensex gained 419 points in three trading sessions to 14,499.24, on 21 June 2007.

Volatility is expected to stay on over the next few days ahead of the expiry of the June 2007 derivatives contracts next Thursday, 28 June 2007.

Japanese shares were trading weaker today, 22 June 2007, with banking stocks such as Mitsubishi UFJ Financial Group and automaker Toyota Motor Corp. leading declines, but chipmaker Advantest Corp. rose sharply as the yen weakened further against the US dollar. The Nikkei was down 0.70% at 18,112.80.

Other Asian markets also edged lower. Hong Kong's Hang Seng (down 0.67% at 21,807.79), South Korea's Seoul Composite (down 1.46% at 1,768.04), Singapore's Straits Times (down 0.66% at 3,615.30), declined.

However, Taiwan's Taiwan Weighted was up 0.14% at 8,864.62

US stocks edged higher on Thursday, 21 June 2007, as investors apparently set aside some interest rate concerns and took a dose of upbeat economic data at face value. The Dow Jones Industrial Average rose 56.42 points, or 0.42%, to 13,545.84. Broader stock indicators also rose. The Standard & Poor's 500 index rose 9.35 points, or 0.62%, to 1,522.19 and the Nasdaq Composite index advanced 17 points, or 0.65%, to 2,616.96.

The important data due today, 22 June 2007, is that of annual inflation for the week ended 9 June 2007. The wholesale price index stood at 4.8% in the week ended 2 June 2007 compared with 4.88% in the corresponding week last year. The dip in inflation was due to decline in food and energy prices.

As per the provisional data, FIIs were net buyers of shares worth Rs 144.49 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 147.71 crore on Thursday, 21 June 2007.