Market to open higher

The market is expected to open higher continuing its Friday’s rally. The 30-share BSE Sensex rose 359.93 points or 1.89% to 19,363.19, on Friday 30 November 2007. The broader based S&P CNX Nifty gained 128.15 points or 2.27% to 5762.75 for the day

Asian markets were trading firm today, 3 December 2007. Hang Seng (up 1.02% at 28,934.56), Singapore's Straits Times (up 1.23% at 3,564.55), Taiwan's Taiwan Weighted (up 0.39% at 8,620.19), South Korea's Seoul Composite (up 0.11% at 1,908.01) and Japan's Nikkei (up 0.02% at 15,684.22) edged higher.

US markets ended mixed on Friday, 30 November 2007 on the expectation that Fed will cut interest rates by 25 basis points in its meeting scheduled on 11 December 2007. The Dow Jones Industrial Average rose 59.99 points 0.45% to 13,371.72 and The S&P advanced rose nearly 1% to 1,481. However the Nasdaq Composite slipped 0.3% to 2,661.

Oil bounced back above $89 a barrel on Monday, 3 December 2007, after close to $10 fall last week. U.S. crude for January delivery rose nearly $1 to above $89.50 a barrel, but was still well off a record high near $100 set on 21 November 2007

The BSE Sensex rose 510.32 points or 2.70% to settle at 19,363.19 while the S&P CNX Nifty rose 154.15 points or 2.74% to 5762.75, in the week ended Friday, 30 November 2007.

At current 19,363.19, Sensex trades at a PE multiple of 18.44 to 19.36 based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

Back home, India's gross domestic product (GDP) rose 8.9% in the second quarter ended 30 September 2007, which was below a robust 9.3% growth recorded in the first quarter ended June 2007. The data was released on Friday, 30 November 2007.

As per provisional data, Foreign Institutional Investors (FIIs) purchased shares worth a net Rs 1072.07 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 688.34 crore on Friday, 30 November 2007.

FIIs sold equities worth Rs 5,849.90 during the month of November 2007. On cumulative basis, FIIs were net buyers of equities to the tune of Rs 65,907.30 crore.