Market to stay subdued

The market is expected to stay subdued on political concerns. The BSE 30-share Sensex rose 128.70 points or 0.86% at 15,121.74, on Thursday, 30 August 2007. The S&P CNX Nifty rose 53 points or 1.22% at 4,412.30, on Thursday, 30 August 2007.

August 2007 futures & options (F&O) contracts expired today. As per reports, the marketwide rollover of positions from August 2007 series to September 2007 series stood at 82.3%, while Nifty rollover was 70%

The Left Front's opposition to the nuclear deal with US had stoked concerns over the past few days that if the Communist allies of the ruling coalition government at the Centre decide to pull their support, the government will be reduced to a minority, triggering fresh elections.

Wholesale price index (WPI) data for the week ending 18 August 2007 is due today, 31 August 2007. Annual inflation was up 4.10% in the week ending 11 August 2007. The rise was due to high prices of fruits, vegetables and pulses.

Also data on gross domestic product (GDP) growth for the April-June 2007 (Q1 of FY 2008) quarter is expected today, 31 August 2007. GDP expanded 9.1% in the January-March 2007 quarter (Q4 of FY 2007) compared with the corresponding period last year. Manufacturing and services sectors contributed to the healthy growth in this quarter.

Japan's Nikkei (up 1.12% at 16,335.23), Taiwan's Taiwan Weighted (up 1.01% at 8,859.57), Hong Kong's Hang Seng (up 0.29% at 23,553.70), Singapore's Straits Times (up 1.30% at 3,364.33), and South Korea's Seoul Composite (up 0.70% at 1,854.59).

US stocks fell yesterday, 30 August 2007, on mounting concerns that credit market upheaval will erode profits and hold back consumer spending. The Dow Jones industrial average lost 50.56 points, or 0.38%, at 13,238.73. The Standard & Poor's 500 Index was down 6.12 points, or 0.42%, at 1,457.64. The Nasdaq Composite Index was up 2.14 points, or 0.08%, at 2,565.30.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 563.66 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 352.96 crore on Thursday, 30 August 2007.

Crude oil prices steadied on Friday, 31 August 2007, as concerns over low oil stocks in the United States were compounded by a possible tropical storm forming in the Atlantic. US crude rose 24 cents to $73.60 a barrel while London Brent was up 21 cents at $72.11 a barrel.

The BSE Sensex has now surged 957 points in four trading sessions, from its close of 14,163.98 on 23 August 2007.