Market to rally on strong global cues

The market is expected to rally on the back of strong global cues. US markets finished strong yesterday, 13 November 2007. Asian markets were trading firm in early trade today, 14 November 2007.

The market may get further booster on reports that the Employees Provident Fund (EPF) Board may examine the option of investing 5% EPF corpus money in stock markets, in an effort to pay higher returns to its subscribers. The over four crore EPF subscribers are presently getting 8.5% interest despite a strong demand by Left Parties to raise the rate to 9.5%.

Asian markets advanced today, 14 November 2007, boosted by a strong rebound on Wall Street yesterday, 13 November 2007. Hong Kong's Hang Seng (up 3.41% at 28,751.71), Japan's Nikkei (up 1.84% at 15,405.45), Taiwan Weighted (up 2.8% at 8,971.50), Straits Times (up 1.62% at 3,531.86) and South Korea's Seoul Composite (up 1.48% at 1,961.56) edged higher.

US markets rallied yesterday, 13 November 2007, after reassuring news from Goldman Sachs Group Inc. and Wal-Mart Stores Inc. calmed some of the market's worst fears about the credit crisis and the economy. The Dow Jones industrial average surged 319.54 points, or 2.46%, to 13,307.09. The S&P 500 index jumped 41.86 points, or 2.91%, to 1,481.04, and the Nasdaq Composite index gained 89.52 points, or 3.46%, to 2,673.65.

Crude oil prices rose slightly today, 14 November 2007, on expectations data will show that US oil inventories fell for a fourth straight week. US light crude for December delivery rose 25 cents to $91.42 a barrel.

On 13 November 2007, the market ended its six-day losing streak to post gains on value buying. The 30-share BSE Sensex surged 298.21 points or 1.59% to 19,035.48. The broader S&P CNX Nifty gained 78.30 points or 1.39% to 5695.40, on that day. Reports that the Left front may allow the government to negotiate safeguards for a civilian nuclear agreement with the US, aided the surge.

As per provisional data, FIIs sold shares worth a net Rs 332.84 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 264.15 crore on Tuesday, 13 November 2007.