Reliance Industries to guide the market

The market may edge higher as investors may hunt for bargains after a steep fall in the last two days. An unexpected slowdown in US retail sales and record quarterly losses posted by financial services giant Citigroup spooked markets across the global on Wednesday, 16 January 2008. Third quarter December 2007 results of Reliance Industries (RIL) will influence the market today given that RIL is a heavyweight in the key indices. RIL is expected to post good Q3 numbers on the back of higher refining margins.

IT giant TCS posted 6.7% rise in net profit as US accounting standards to Rs 1331 crore in Q3 December 2007 over Q2 September 2007. The results which hit the market after trading hours on Wednesday, were in line with market expectations.

Q3 December 2007 results are being keenly watched this time because some of the top brokerages expect slowdown in earnings growth of the 30-Sensex companies in the quarter.

Foreign institutional investors (FIIs) were net sellers of Rs 3,760 crore in the futures & options (F&O) market on Wednesday, the day when Sensex had lost 383 points amid setback in global markets. FIIs were net sellers of Rs 3,164 crore in index futures, and Rs 1,080 crore in stock futures. They were buyers of Rs 484 crore in index options.

FIIs were net sellers of Rs 2,517.59 crore (provisional) in the cash market on Wednesday, according to data released by NSE. Domestic institutional investors (DIIs) were net buyers of Rs 188.97 crore on Wednesday.

A meeting of the group of ministers (GoM) on fuel pricing is scheduled today. There had been reports recently that the government may hike petrol prices by a steep Rs 4 per litre and diesel by Rs 2 per litre. A steep hike retail fuel prices will result in increase in inflation.

Asian markets were mostly lower on Thursday, 17 January 2008. Key benchmark indices in Hong Kong, China, Taiwan and South Korea were down by between 0.39% to 2.1%. Though the Nikkei was still in the green, it had pared earlier gains. It was up just 0.29%.

US stocks fell on Wednesday, after Intel Corporation posted both a disappointing profit and outlook. The Dow Jones industrial average lost 34.95 points, or 0.28%, at 12,466.16. The Standard & Poor's 500 Index lost 7.75 points, or 0.56%, at 1,373.20. The Nasdaq Composite Index shed 23 points, or 0.95%, at 2,394.59.

Crude oil futures declined 1.15% at $90.84 on Wednesday, 16 January 2008.