Uptrend may continue

Market is expected to continue its uptrend, following positive cues from global markets. Strong inflows from FIIs and expectations of strong Q1 June 2007 results may aid the upmove.

However, volatility is expected in the near term ahead of expiry of July 2007 derivatives contracts on Thursday, 26 July 2007.

The BSE 30-share Sensex surged 248.96 points, or 1.63%, to 15,550.13, an all-time closing high, on Thursday, 19 July 2007. It also jumped to an all time high of 15,593.31 on that day.

Annual inflation data for the week ending 7 July 2007 is expected by today, 20 July 2007, afternoon. Inflation inched up to 4.27% in the week ended 30 June 2007 due to an increase in prices of food articles and manufactured items.

Asian indices got a lift early today from a record close on Wall Street, with Japanese rising on strong earnings reports from LG Electronics and Korea Zinc Inc. Nikkei gained 0.35% at 18,180.25.

Hong Kong's Hang Seng (up 0.80% at 23,200.93), Taiwan's Taiwan Weighted (up 0.51% at 9,521.55), Singapore's Straits Times (up 1.06% at 3,642.83) and South Korea's Seoul Composite (up 1.66% at 1,969.98), posted gains in early trade.

Wall Street edged higher yesterday, 19 July 2007, taking the Dow Jones Industrial Average (DJIA) to its first close above 14,000 as investors kept jitters about the economy at bay and focused on a string of upbeat earnings reports. The Standard & Poor's 500 index also had a record close.

The Dow advanced 82.19 points, or 0.59%, to 14,000.41. Broader stock indicators also gained Thursday. The S&P 500 index gained 6.91 points, or 0.45%, to 1,553.08. The technology-focused Nasdaq Composite index rose 20.55 points, or 0.76%, to 2,720.04, following the upbeat tech earnings.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 652.08 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 149.01 crore on Thursday, 19 July 2007.