Market may recover

Figures showing surge in advance tax payments for the third installment for the quarter ended 15 December 2007 by top corporates may help the market recover from Monday’s steep fall. As per reports, Reliance Industries (RIL) has paid advance tax of Rs 1045 crore in the third quarter ended 15 December 2007 compared to Rs 440 crore in the corresponding quarter of the previous year. State Bank of India (SBI) shelled out Rs 1090 crore, up 26.7% over the tax it paid in the corresponding period in the previous year.

Volatility may remain high in the near term ahead of expiry of December 2007 derivatives contracts next Thursday, 27 December 2007. The market remains closed on Friday, 21 December 2007 on account of Bakri Id and also on Tuesday, 25 December 2007 on account of Christmas. Therefore, only six trading sessions are left for expiry of December 2007 derivatives contracts.

Asian stocks were in green on Tuesday, 18 December 2007. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were up by between 0.14% to 1.1%.

US stocks tumbled on Monday, 17 December 2007, on concerns about the US economy, amid signs of rising inflation and weakness in holiday shopping. The Dow Jones industrial average slid 172.65 points, or 1.29%, to end at 13,167.20. The Standard & Poor's 500 Index dropped 22.05 points, or 1.50%, to 1,445.90. The Nasdaq Composite Index tumbled 61.28 points, or 2.32%, to 2,574.46.

US government reports last week showed rising price pressures in November 2007, while concerns about the housing slump intensified after news that sentiment among US home builders held at a record low for a third consecutive month in December 2007.

As per provisional data, FIIs sold shares worth a net Rs 2151.21 crore on Monday, 17 December 2007. Domestic funds bought shares worth a net Rs 226.86 on that day.

FIIs were net sellers to the tune of Rs 2,196.83 crore in the futures & options segment on Monday, 17 December 2007. According to data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 2,042.39 crore and bought index options worth Rs 355.82 crore. They were net sellers of stock futures to the tune of Rs 509.24 crore and sold stock options worth Rs 1.01 crore on that day.

The 30-share BSE Sensex slumped 769.48 points or 3.84% to 19,261.35 on Monday, 17 December 2007, tracking weak global equities.