Market to consolidate

The market is expected to consolidate before making any fresh upmove. Global cues were mixed.

Media reports that the government is considering raising the securities transaction tax (STT) to 0.5% may also impact market sentiment. Finance minister P Chidambaram could move an appropriate amendment to the Finance Act, 2007, in Parliament in the current winter session for raising STT, reports suggest.

Asian markets fell today, 21 November 2007. Hong Kong's Hang Seng (down 2.58% at 27,054.06), Japan's Nikkei (down 1.29% at 15,015.43), Singapore's Straits Times (down 1.29% at 3,393.75), Taiwan's Taiwan Weighted (down 0.38% at 8,647.61), South Korea's Seoul Composite (down 1.19% at 1,850.01), edged lower.

US markets recovered in late trade on speculation of possible rate cut on 11 December 2007. The Dow Jones industrial average gained 51.70 points, or 0.04%, to 13,010.14. The Standard & Poor's 500 index advanced 6.43 points, or 0.45%, to 1,439.70, and the Nasdaq Composite index surged 3.43 points, or 0.13%, to 2,596.81.

Oil prices resumed their march toward $100 a barrel. Light crude for January delivery surged $3.39 to settle at a record $98.03 a barrel on the New York Mercantile Exchange.

As per provisional data, FIIs sold shares worth a net Rs 1800.68 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 463.95 crore on Tuesday, 20 November 2007.

Market posted losses for fourth straight day on Tuesday, 20 November 2007. The 30-share BSE Sensex lost 352.56 points or 1.8% at 19,280.80. The S&P CNX Nifty ended down 126.75 points or 2.15% to 5,780.90 on that day.