Market to head higher

The market is expected to rally, as global markets rebounded after recent fall. Local bourses posted losses for three previous trading sessions, tracking weak global markets. On Friday, 17 August 2007, the Sensex lost 216.69 points, or 1.51%, to 14,141.52, in a highly volatile trade, dancing to global cues. The S&P CNX Nifty shed 70.55 points, or 1.69%, to 4,108.05, on that day.

The benchmark index BSE Sensex posted fourth straight weekly loss, loosing 726.73 points to 14,141.52 in the week ended Friday, 17 August 2007. The S&P CNX Nifty was down 225.30 points to 4,108.05 in the week. A whole host of factors right from yen carry trade unwinding, hedge fund redemption pressure, heavy FII selling and sub-prime concerns haunted local bourses throughout the week.

Asian markets rebounded today, 20 August 2007 taking their cue from Wall Street's recovery on Friday, 17 August 2007, after the Federal Reserve cut a key interest rate. Japanese Nikkei (up 3.69% at 15,836.57), Hong Kong's Hang Seng (up 2.62% at 20,922.08), Taiwan's Taiwan Weighted (up 5.02% at 8,496.31), Singapore's Straits Times (up 4.65% at 3,276.35) and South Korea's Seoul Composite (up 4.79% at 1,716.51) all edged higher.

US stocks rallied on Friday, 17 August 2007, after posting losses for the 6 straight previous trading sessions, as the Federal Reserve cut its key discount rate by 0.5% to 5.75 %. The Dow Jones Industrial Average surged 233.30 points, or 1.82 %, to 13,079.08. The Standard & Poor's 500 index rose 34.67 points, or 2.46 %, to 1,445.94, and the Nasdaq Composite index rose 53.96 points, or 2.20 %, to 2,505.03.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 3535.76 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 1944.48 crore on Friday, 17 August 2007.

Crude oil fell in New York on signs Hurricane Dean's more southerly track may mean it will miss the largest oil production regions of the Gulf of Mexico. Crude oil for September delivery dropped as much as 94 cents, or 1.3%, to $71.04 a barrel on the New York Mercantile Exchange