Market may gain further ground

The market is expected to gain further ground on continued buying support. Also local mutual funds are providing support at lower levels. As per the latest data, they pumped Rs 2524.30 crore in the Indian equity market for the month of August 2007 (till 25 August 2007).

Volatility is expected to remain high ahead of the expiry of derivatives contracts for August 2007 series on Thursday, 30 August 2007.

Asian markets were trading mixed today, 28 August 2007, after US stocks reacted to weak housing data overnight.

Japan's Nikkei (up 0.19% at 16,332.06), Taiwan Weighted (up 0.35% at 8,749.24), South Korea's Seoul Composite (up 1.26% at 1,825.72) rose. However, Hang Seng (down 0.25% at 23,519.17) and Singapore's Straits Times (down 0.36% at 3,376.28) slipped.

US shares slipped yesterday, 27 August 2007 after news that sales of existing homes slipped in July 2007 for a fifth straight month stirred concerns about the strength of the economy. The Dow Jones industrial Average fell 56.74 points, or 0.42%, to 13,322.13. Broader stock indicators also declined. The Standard & Poor's 500 index fell 12.58 points, or 0.85%, to 1,466.79, and the Nasdaq Composite index fell 15.44 points, or 0.60%, to 2,561.25.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 695.35 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 193.32 crore on Monday, 27 August 2007.

Crude oil prices were steady at above $72 on Tuesday, 28 August 2007, with US refinery shutdowns reviving supply concerns. US crude rose 6 cents to $72.03 a barrel. London Brent gained 7 cents to $71.02 a barrel.

Sensex had surged 417.51 points or 2.89% at 14,842.38, on Monday, 27 August 2007. The S&P CNX Nifty jumped 112.45 points or 2.68% at 4,302.60, Monday, 27 August 2007.

The BSE Sensex is up 28.26% over the one-year period from its close of to 11,572.20 on 25 August 2006.