Sensex may strike all time high

The market is likely to extend its gains on the back of positive global cues, healthy rollover of derivative positions from October 2007 series to November 2007 series. However high volatility may not be ruled out. The BSE 30-share Sensex advanced 257.98 points or 1.39% at 18,770.89, on Thursday 25 October 2007. It is now 427.77 points away from its all-time high is at 19,198.66 struck on 18 October 2007. The broader based S&P CNX Nifty rose 72.80 points or 1.32% at 5,568.95, on Thursday 25 October 2007.

Meanwhile in a meeting after market hours on Thursday, 25 October 2007, market regulator Securities & Exchange Board of India (Sebi), in its board meeting has put in place a set of regulations to clamp down excessive inflows through participatory notes (PN). The regulator affirmed that sub-accounts would not be allowed to issue PNs and that FIIs will have to unwind offshore derivative instruments (ODI) positions in 18 months. Sebi further allowed both regulated and unregulated pension funds, endowments, university funds and charitable trusts to register as FIIs.

The Nifty November 2007 futures settled 5535.15, a discount of 33.80 points as compared to spot closing. Nifty October 2007 futures expired yesterday, 25 October 2007. Rollovers were healthy and in-line with the previous two months. As per market data, marketwide rollover of derivative positions from the October 2007 series to the November 2007 series was 84%, while the Nifty rollover was 71%.

Marketwide rollover of derivatives positions from September 2007 to October 2007 was 84% while that of August 2007 contracts to September 2007 contracts was 82.30%. Nifty rollover for September 2007 to October 2007 was 71% and that of August 2007 contracts to September 2007 was 70%.

Asian markets were trading higher today, 26 October 2007. Hong Kong's Hang Seng (up 0.63% at 30,042.78), Japan's Nikkei (up 0.61% at 16,383.88), Taiwan's Taiwan Weighted (up 0.45% at 9,611.39), Straits Times (up 0.87% at 3,739.28) and South Korea's Seoul Composite (up 1.29% at 2,002.18) edged higher.

US markets ended slightly lower yesterday, 25 October 2007, as investors were uneasy about the credit markets and record-high oil prices took little solace from reports on new home sales and durable goods orders. The Dow Jones Industrial Average slipped 3.33 points, or 0.02%, to 13,671.92. The Standard & Poor's 500 index lost 1.48 points, or 0.10%, to 1,514.40, while the Nasdaq Composite Index lost 23.90 points, or 0.86%, to 2,750.86.

The Reserve Bank of India's (RBI) mid-term review of annual policy due on 30 October 2007 and US Federal Reserve’s meeting on 31 October 2007 on interest rates, will be key events that will drive the market in the near term.

As per provisional data, FIIs sold shares worth a net Rs 625.34 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 788.37 crore on Thursday, 25 October 2007.

Crude oil prices surged to all-time high of $91.10 a barrel in early trade on Friday, 26 October 2007 bolstered by supply concerns during the northern Hemisphere winter and growing political tensions in Middle East. NYMEX crude for December delivery which had hit a record high of $91.10 barrel, was up 31 cents at $90.77.