Market may remain choppy

The market is expected to stay cautious ahead of the crucial US Federal Reserve meet scheduled after Indian market hours today, 11 December 2007, to consider interest rates. Fed is expected to cut Fed funds rate by at least 25 basis points. Recent data showing strong job creation by the US private sector in November 2007 has eased US recession worries.

Meanwhile, oncerns on the political front resurfaced once again yesterday, 10 December 2007 after communist allies warned the government against going ahead with a civilian US nuclear deal. Communist parties, a key ally of the ruling Congress party-led coalition, fired a fresh salvo on Sunday, 9 December 2007, asking the government to stop talks on a controversial nuclear deal with a UN nuclear watchdog.

Asian markets were trading higher today, 11 December 2007. Hong Kong's Hang Seng (up 1.15% at 28,828.65), Japan's Nikkei (up 0.71% at 16,038.01), Taiwan's Taiwan Weighted (up 0.25% at 8,619.31), Straits Times (up 0.37% at 3,566.19), South Korea's Seoul Composite (up 0.47% at 1,915.40) and Shanghai Composite (up 0.37% to 5,180.29), all edged higher

US markets ended higher yesterday, 10 December 2007 ahead of Fed rate decision. The Dow Jones Industrial Average gained 101.45 points, or 0.74%, to 13,727.03. The Standard & Poor's 500 index shot up 11.30 points, or 0.75%, to 1,515.96. The Nasdaq Composite index advanced 12.79 points, or 0.47%, to 2,718.95.

Back home, the 30-share BSE Sensex slipped 35.32 points or 0.18% to 19,930.68 in volatile trade on Monday, 10 December 2007. The broader S&P CNX Nifty lost 13.7 points or 0.23% at 5,960.60 on that day.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 192.19 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 230.15 crore on Monday, 10 December 2007.

FIIs were net sellers to the tune of Rs 251.46 crore in the futures & options segment on Monday, 10 December 2007. FIIs were net sellers of index futures to the tune of Rs 46.62 crore and they bought index options worth Rs 60.90 crore. They were net sellers of stock futures to the tune of Rs 247.54 crore and sold stock options worth Rs 18.20 crore.

Crude oil traded near $88 a barrel in New York after falling the past two days on speculation slowing growth in the U.S. will trim demand and help increase stockpiles. Crude oil for January delivery was at $88.12 a barrel, up 26 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore. Brent crude oil for January settlement fell 60 cents, or 0.7%, to close at $88.04 a barrel on the London-based ICE Futures Europe exchange.