The market is expected to extended Friday (23 November 2007)’s surge after US shares were buoyed on Friday (23 November 2007) by a strong start to the US holiday shopping period.
Friday’s US rally boosted stocks across Asia. Key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore and Taiwan were up by between 0.6% to 3.5%.
The Dow Jones industrial average jumped 181.84 points, or 1.42%, to close at 12,980.88 on Friday, 23 November 2007. The Standard & Poor's 500 Index gained 23.93 points, or 1.69% to finish at 1,440.70. The Nasdaq Composite Index advanced 34.45 points, or 1.34%, to end at 2,596.60.
Bargain hunting had triggered a surge in Sensex on Friday, 23 November 2007. The 30-share BSE Sensex rose 326.55 points or 1.76% at 18,852.87. FII sales caused by redemption pressure in their home countries and fears of a US recession arising from housing slump and credit crisis had spooked stocks across Asian over the past few days. Concerns about the health of the US economy remain.
As per provisional data, FIIs sold shares worth a net Rs 542 crore on Friday, 23 November 2007. Domestic funds bought shares worth a net Rs 525.86 crore on that day.
FII outflow in November 2007, till 22 November 2007, reached Rs 4455.40 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.
India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released on Friday, 23 November 2007 showed. The annual inflation rate was 5.39% during the corresponding week of the previous year.