Market may extend gains on robust FII inflow

The market is likely to extend gains on firm Asian stocks and robust FII inflow. As per provisional data, FIIs were net buyers to the tune of Rs 198 crore in equities on Wednesday, 18 July 2007. The market staged a solid intra-day rebound on Wednesday, 18 July 2007, to gain 11 points to 15,301.17.

Besides good corporate earnings in a fast growing economy, a rise in the value of the Indian rupee against the dollar has attracted foreign funds. FII inflow by the first half of July 2007 reached Rs 19334.30 crore (till 17 July 2007). The large inflows this month are also due to FII subscription to IPOs of DLF and ICICI Bank.

Receding fears of rising interest rate has aided the surge on the domestic bourses which is hovering near a record high. Inflation is hovering at a little above 4%.

As per provisional data, domestic institutions were net sellers to the tune of Rs 57 crore on Wednesday, 18 July 2007.

Key benchmark indices in Asia were up by between 0.1% to 0.4% on Thursday, 19 July 2007.

US stocks fell on Wednesday on deepening concerns that a crisis in lending could spread and a warning from the Federal Reserve chairman that weakness in housing could hurt economic growth for some time. Dow Jones Industrial Average lost 53.33 points to 13,918.22. The tech laden Nasdaq Composite Index shed 12.80 points to 2,699.49.

Oil jumped more than a dollar on Wednesday after a steep drop in US gasoline stocks fanned concerns the world's top consumer could face a shortfall during the peak summer driving season. Global benchmark London Brent crude settled up $1.23 at $76.76 a barrel on Wednesday.