Market to head higher

The market is expected to head higher tracking firm US markets overnight. Also most of the Asian markets were trading higher today, 12 September 2007.

However some nervousness may prevail as the government which held initial talks with its communist allies yesterday, 11 September 2007 over a controversial India-U.S. nuclear deal, threatened to split the ruling coalition. As per Foreign Minister Pranab Mukherjee, the meeting framed broad issues to be taken up for discussions and the committee would meet again on 19 September 2007.

Also the Index of Industrial Production (IIP) data for July 2007 is due today, 12 September 2007. IIP was up 9.8% in June 2007 compared with 9.7% in June 2006. It edged up 11% in April-June 2007 as against 10.5% in April-June 2006. The rise in IIP was due to continuing growth in manufacturing and electricity sectors.

Most of the Asian markets were higher today, 12 September 2007, in the wake of Wall Street's strong gains overnight. Hang Seng (up 0.96% at 24,181.91), Japan's Nikkei (up 0.36% at 15,934.36), Taiwan Weighted (up 0.19% at 9,019.95) and Singapore's Straits Times (up 0.61% at 3,516.04) gained. However, South Korea's Seoul Composite slipped 0.77% at 1,833.1

US markets advanced sharply yesterday, 11 September 2007 as investors grew more confident that the Federal Reserve will lower interest rates next week, even after its chairman gave no clues about the central bank’s intentions. The Dow Jones Industrial Average (DJIA) rose 180.54 points, or 1.38%, to 13,308.39. The Standard & Poor's 500 index rose 19.79 points, or 1.36%, to 1,471.49, while the Nasdaq Composite index rose 38.36 points, or 1.50%, to 2,597.47.

Crude oil prices held near a record high over $78 a barrel on Wednesday, 12 September 2007, after OPEC's token output increase failed to soothe consumers' worries about falling inventories. US light crude for October delivery rose 8 cents to $78.31 a barrel, after a record close yesterday, 11 September 2007 of $78.23, and within striking limit of 1 August 2007’s record high of $78.77.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 256.59 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 444.75 crore on Tuesday, 11 September 2007.

The BSE 30-share Sensex shed 54.06 points or 0.35% at 15,542.77, on Tuesday, 11 September 2007. It is now 326.08 points away from its all time high of 15,868.85 hit on 24 July 2007.

The S&P CNX Nifty declined 10.80 points or 0.24% at 4,497.05, on Tuesday, 11 September 2007