The market may edge lower tracking weak global cues. Meanwhile all eyes will be on the Reserve Bank of India (RBI)’s meet scheduled on Tuesday, 29 January 2008 to review key rates. Analysts expect RBI to leave borrowing costs unchanged at 7.75% as it assesses whether last week's emergency U.S. interest rate cut will spark a flood of capital inflows, spurring inflation. India’s central bank had raised its benchmark interest rate nine times since October 2004 to keep inflation below the 5% mark.
Third quarter December 2007 results so far have been decent. A total of 844 companies reported 37.60% rise in net profit on 21.10% rise in net sales for Q3 December 2007 over Q3 December 2006.
Asian markets were trading weak today, 28 January 2008. Hong Kong's Hang Seng (down 3.15% at 24,330.48), Japan's Nikkei (down 2.60% at 13,274.93), Taiwan's Taiwan Weighted (down 1.83% at 7,598.27), Singapore's Straits Times (down 2.76% at 3,072.33), China’s Shanghai Composite (down 5.39% to 4,505.84) and South Korea’s Seoul Composite (down 1.98% at 1,658.97), edged lower.
US markets declined on Friday, 25 January 2008 led by financial companies, on concern that banks will be saddled with more credit market losses and the Federal Reserve won't cut interest rates enough to stimulate growth. Dow Jones industrial average slipped 171.44 points or 1.38% to 12,207.17 and the Nasdaq Composite lost 34.72 points or 1.47% to 2,326.20.
Stocks across the globe rallied on Friday, 25 January 2008 led by several factors including strong corporate sentiment in Germany and a return of some confidence in the US economy after solid employment data and a congressional fiscal package. The Bush administration's fiscal package includes $150 billion of tax rebates and business incentives meant to prevent a slowdown in the country's economy.
The 30-share BSE Sensex soared 1,139.92 points or 6.62% to 18,361.66, its biggest ever singe day rise in absolute terms on a closing basis on Friday, 25 January 2008. The broader CNX S&P Nifty jumped 349.90 points or 6.95% to 5383.35 on Friday, 25 January 2008
The BSE Sensex lost 652.04 points or 3.42% to 18,361.66 in the week ended Friday, 25 January 2008. The S&P CNX Nifty fell 321.95 points or 5.64% to 5,383.35 in the week.
Meanwhile, India's wholesale price index rose 3.83% in the 12 months to 12 January 2008 marginally higher than the previous week's rise of 3.79%, government data showed on Friday, 25 January 2008. The annual inflation rate was 6.15% during the corresponding week of the previous year.
As per provisional data, foreign institutional investors (FIIs) bought shares worth Rs 208.48 crore on Friday, 25 January 2008 while Domestic institutional investors (DIIs) were net buyers of shares worth Rs 248.35 crore
FIIs were net buyers to the tune of Rs 2,878.77 crore in the futures & options segment on Friday, 25 January 2008. They were net buyers of index futures to the tune of Rs 2,045.63 crore and bought index options worth Rs 170.68 crore. They were net buyers of stock futures to the tune of Rs 673.34 crore and sold stock options worth Rs 10.87 crore.
Crude oil prices dropped on Monday, 28 January 2008 with the light, sweet crude for March delivery sliding 63 cents to $90.08 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. Brent crude fell 50 cents to $90.40 a barrel on the ICE Futures exchange in London.