Market may advance on strong global cues

The market may advance following strong global markets. All Asian markets were trading with gains today, 14 February 2008. Hang Seng (up 3.05% at 23,876.21), Japan's Nikkei (up 2.79% at 13,433.04), Shanghai Composite (up 1.04% to 4,537.38), Taiwan's Taiwan Weighted (up 2.93% at 7,772.07), Singapore's Straits Times (up 2.91% at 3,035.31) and South Korea's Seoul Composite (up 2.55% at 1,673.40) all edged higher.

US Markets rallied on Wednesday, 13 February 2008 after a surprise gain in January retail sales and a tech rally led by Apple materials, which beat earnings forecast. The Dow Jones industrial average gained 178.83 points, or 1.45%, to 12,552.24. The S&P 500 index rose 18.35 points, or 1.36%, to 1,367.21, and the Nasdaq Composite index advanced 53.89 points, or 2.32%, to 2,373.93.

Back home, the market breached its five-day losing streak to post gains on Wednesday, 13 February 2008 on the back of strong global cues and buying support in large-caps. The 30-share BSE Sensex surged 341.13 points or 2.05% at 16,949.14 on Wednesday, 13 February 2008. The broader CNX S&P Nifty rose 91.20 points or 1.88% at 4929.45 for the day.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 9.40 crore on Wednesday, 13 February 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 23.59 crore on that day.

FIIs were net buyers to the tune of Rs 1,701.55 crore in the futures & options segment on Wenesday, 13 February 2008. They were net buyers of index futures to the tune of Rs 1,083.99 crore and bought index options worth Rs 18.18 crore. They were net buyers of stock futures to the tune of Rs 603.59 crore and sold stock options worth Rs 4.21 crore.

Meanwhile, as per reports Dominique S. Kahn, managing director of the International Monetary Fund said yesterday, 13 February 2008 that emerging economies such as India, which are expanding rapidly, are not insulated from the impact of a slowdown in the US and will feel the pinch sooner or later. Kahn, who is on a three-day visit to India, also underlined the need for a global solution to the problem of financial crisis, which could have a ripple effect on several economies.