Market to head higher in volatile trade

The market is likely to head higher following strong global cues. However volatility may increase during the week as December 2007 derivatives contracts are set to expire on Thursday, 27 December 2007. Trading for the week will be truncated, as market will remain closed on Tuesday, 25 December 2007 on account of Christmas. Volumes are also expected to be dull as foreign fund managers will be on annual vacation.

In a spectacular victory, the Bhartiya Janta Party (BJP) got an absolute majority in the Gujarat Assembly elections capturing power for the fourth straight time propelled by Chief Minister Narendra Modi who gets a third term in office. The BJP got 117 seats, just five short of a two-thirds majority in a house of 182. The Congress, whose earlier tally was 51, got 62 seats marginally improving its position over 2002 elections. Others have got three seats. Modi, who will is likely to be sworn in on 27 December 2007.

Asian markets were trading higher today, 24 December 2007. Hong Kong's Hang Seng (up 1.49% at 28,037.93), Taiwan's Taiwan Weighted (up 2.14% at 8,111.70), Singapore's Straits Times (up 1.21% at 3,439.25), and South Korea's Seoul Composite (up 2.06% at 1,917.02) edged higher

US markets ended higher on Friday, 21 December 2007, led by technology and energy stocks. The Dow Jones Industrial Average gained 205 points at 13451. The Nasdaq Composite index advanced 51 points to 2692, and the S&P 500 index rose 24 points at 1484.

Crude oil for February delivery traded 9 cents lower at $93.22 a barrel in New York Mercantile Exchange electronic trading.

Back home, the 30-share BSE Sensex rose 70.61 points or 0.37% to 19,162.57 on Friday, 21 December 2007. The S&P CNX Nifty gained 15.35 points or 0.27% to 5,766.50 for the day.

On a weekly basis, the 30-share BSE Sensex declined 868.26 points or 4.33% to 19,162.57 in the week ended Thursday, 20 December 2007. The S&P CNX Nifty slipped 281.20 points or 4.64% to 5,766.50 in the week. The market was closed on Friday, 21 December 2007 on account of Bakri Id.

Annual inflation, based on the wholesale price index (WPI), rose 3.65% in the week ended 8 December 2007, lower than previous week's 3.75% rise, data released by the government during trading hours on Thursday, 20 December 2007 showed