Market to consolidate

The market is expected to consolidate on muted cues from global markets. The BSE 30-share Sensex surged 148.96 points, or 1%, to 15,017.21, on Monday, 13 August 2007. The S&P CNX Nifty rose 40.30 points, or 0.93%, to 4,373.65.

The Nifty August 2007 futures discount declined consistently for the third straight session yesterday, 13 August 2007, indicating short covering at lower levels. The Nifty August 2007 futures settled at 4360, a discount of 13.65 points as compared to spot closing.

Asian indices were trading lower today, 14 August 2007 after wavering around the previous session's closing levels during early trading. Financial shares paced losses after US stocks declined overnight, with Sompo Japan Insurance and Sumitomo Mitsui Financial Group leading the decline in Japan. Nikkei was down 0.02% at 16,797.48.

Hang Seng (down 0.13% at 21,863.29), Singapore's Straits Times (down 0.08% at 3,378.05), South Korea's Seoul Composite (down 0.62% at 1,837.78), declined.

However, Taiwan Weighted gained 0.62% at 8,994.13

Wall Street shares gave up a moderate gain in late trading and closed marginally lower yesterday, 13 August 2007 after the Federal Reserve and other central banks added more cash to their banking systems, helping investors set aside some concerns about credit tightness.

The Dow Jones industrial average fell 3.01 points, or 0.02%, to 13,236.53. Broader stock indicators also fell. The Standard & Poor's 500 index fell 0.72 points, or 0.05%, to 1,452.92, and the Nasdaq Composite index retreated 2.65 points, or 0.10%, to 2,542.24.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 559.58 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 137.76 crore on Monday, 13 August 2007.

U.S. crude oil was little changed on Tuesday, 14 August 2007 after managing a slight gain a day ago, supported by central bank cash injections into the global financial system and storms brewing in the Atlantic basin. U.S. crude oil futures slipped 7 cents to $71.55 a barrel. London's Brent crude fell 8 cents to $70.15 a barrel.