The market may is likely to open with an upward gap today tracking firm global markets. However, volatility may rise during the course of the day as November 2007 derivatives contracts expire today, 29 November 2007. A healthy rollover of 68% was witnessed in Nifty futures at the end of Wednesday (28 November 2007)’s trade. The market wide rollover was about 58% to 60%.
Foreign institutional investors (FIIs) were net buyers to the tune of Rs 599.58 crore in the futures & options segment on Wednesday. According to data released by the NSE, FIIs were net buyers of index futures to the tune of Rs 455.92 crore and bought index options worth Rs 340.82 crore. They were net sellers of stock futures to the tune of Rs 195.88 crore and sold stock options worth Rs 1.29 crore.
The market has been volatile over the past few days due to alternate bouts of buying and selling amid FII sales caused by redemption pressure in their home countries and fears of a US recession arising from US housing slump and credit crisis.
FIIs sold shares worth a net Rs 978.96 crore in the cash market on Wednesday, 28 November 2007, as per provisional data. Domestic funds bought shares worth a net Rs 331.82 crore on that day.
FII outflow in November 2007, till 27 November 2007, reached Rs 4422.30 crore. FIIs had made heavy purchases in September 2007 and October 2007. FIIs had bought shares worth a net Rs 16132.60 crore in September 2007 and Rs 20590.90 crore in October 2007.
Asian stocks surged on Thursday, 29 November 2007 after comments on Wednesday, 28 November 2007, from US Federal Reserve officials raised the chances of another US rate cut in December 2007. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were up by between 1.2% to 4.1%. The Fed's next policy-setting meeting is scheduled for 11 December 2007.
The Dow Jones industrial average jumped 331.01 points, or 2.55%, at 13,289.45 on Wednesday, 28 November 2007. The Standard & Poor's 500 Index was up 40.79 points, or 2.86% at 1,469.02. The Nasdaq Composite Index was up 82.11 points, or 3.18%, at 2,662.91.
Crude oil prices declined sharply for a second day in a row on Wednesday, 28 November 2007.