Market may remain firm

The market is likely to extend gains tracking firm global equities. The barometer index BSE Sensex rose 14 points on Monday, 2 July 2007 to a record closing high of 14664.26. The sentiment has been lifted by data, on Friday 29 June 2007, showing fall in inflation to a 14-month low.

As per provisional data, FIIs were net buyers to the tune of Rs 95 crore on Monday, 2 July 2007. Domestic institutions were net sellers to the tune of Rs 87 crore on that day.

The next major trigger for the market is Q1 June 2007 result of IT bellwether Infosys which is on Wednesday, 11 July 2007. A Q1 results preview by Citigroup states that downward revision in EPS guidance for FY 2008 (year ending 31 March 2008) by Infosys cannot be ruled out given a surge in the rupee against the dollar in Q1 June 2007. Citigroup, however, expects an upward revision in revenue guidance in dollar terms from the IT bellwether.

Asian shares forged ahead on Tuesday, 3 July 2007, led higher by energy companies as oil and base metals rose, but the dollar sagged on expectations that US rates will remain steady while borrowing costs rise elsewhere.

US stocks rallied on Monday, 2 July 2007, on a fresh bout of takeover activity, as Canada's largest telephone company, BCE Inc. agreed to a US$32.6 billion buyout. On Wall Street, blue-chip stocks and the Nasdaq Composite Index both rose about 1%.