Market may consolidate at high levels.

The market is expected to consolidate at all time high levels, as the five day rally was halted on Thursday, 5 July 2007, on profit booking. The barometer index gained 449 points, or 3.11%, in five trading sessions to 14,880.24 on Wednesday, 4 July 2007, from its close of 14,431.06 on 27 June 2007.

The BSE 30-share Sensex settled with a decline of 18.35 points, or 0.12%, to 14,861.89, on Thursday, 5 July 2007.

WPI data for the week ending 23 June 2007 is expected by noon today, Friday, 6 July 2007. Annual inflation was 4.03% in the week ending 16 June 2007 - the lowest in 14 months. The fall in inflation has been attributed to decline in prices of certain essential food items and manufactured products and strong base effect.

Cues from the Asian markets were not encouraging either. Japan's Nikkei 225 index reversed direction after six straight days of gains as automakers such as Toyota Motor Corp. and machinery maker Komatsu declined. Japan's Nikkei slipped 0.63% at 18,107.50.

Hang Seng (down 0.59% at 22,121.80), Taiwan Weighted (down 0.31% at 9,120.31), Straits Times (down 0.16% at 3,546.17), edged lower.

However, South Korea's Seoul Composite was up 0.16% or 2.96 points at 1,850.75.

US stocks closed mixed in uneven post-holiday trading on Thursday, 5 July 2007, as a rebound in bond yields stifled Wall Street's excitement about new buyout activity and strength in the US service sector. The Dow fell 11.46 points, or 0.08%, to 13,565.84. Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index rose 0.53 points, or 0.03%, to 1,525.40, while the Nasdaq Composite index rose 11.70 points, or 0.44%, to 2,656.65.

As per provisional data, foreign institutional investors (FIIs) were net buyers of Rs 148.99-crore equities on Wednesday, 4 July 2007, while domestic institutional investors (DIIs) also pumped Rs 305.43- crore in equities.