Market may decline on weak global cues

The market may slide following weak global cues. However some rebound may come at lower levels in second half.

Meanwhile in an attempt to boost liquidity, the Securities and Exchange Board of India (Sebi) panel has recommended that the face value of shares be made a uniform Re 1 in two phases. In the first phase, said the primary market advisory committee of SEBI, all forthcoming IPOs be priced based on a mandatory Re 1 face value per share. In the second phase, listed entities having shares with more than Re 1 face value be asked to bring it down to the uniform value. The panel recommendation would be discussed at the next SEBI board meeting.

Asian markets were lower today, 20 February 2008. Japan's Nikkei (down 0.77% at 13,651.64), Hong Kong's Hang Seng (down 0.39% at 24,027.91), Taiwan's Taiwan Weighted index (down 0.29% at 8,000.74), Singapore's Straits Times index (down 0.71% at 3,076.16), South Korea's Seoul Composite index (down 0.56% at 1,710.92) and China’s Shanghai Composite index (down 0.98% to 4,618.51) edged lower

US markets slipped on Tuesday, 19 February 2008 as crude oil surged above $100 a barrel, erasing earlier gains on concerns that higher energy costs could fan inflation and cut consumer spending and profits. The Dow Jones industrial average declined 10.99 points, or 0.09%, to 12,337.22. The Standard & Poor's 500 index slipped 1.21 points, or 0.09%, to 1,348.78; and the Nasdaq composite fell 15.60 points, or 0.67%, to 2,306.20.

Back home, the 30-share BSE Sensex rose 27.61 points or 0.15% at 18,075.66 on Tuesday, 19 February 2008. The broader based S&P CNX Nifty gained 3.90 points or 0.07% at 5,280.80 on that day.

At current 18,075.66, Sensex trades at a PE multiple of 17.21 to 18.07, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 329.25 crore on Tuesday, 19 February 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 48.29 crore on that day

FIIs were net buyers to the tune of Rs 424.68 crore in the futures & options segment on Tuesday, 19 February 2008. They were net buyers of index futures to the tune of Rs 94.69 crore and bought index options worth Rs 218.01 crore. They were net buyers of stock futures to the tune of Rs 101.01 crore and bought stock options worth Rs 10.97 crore.

Crude oil slipped on Wednesday, 20 February 2008 after surging nearly 5% to a record above $100.10 a barrel a day ago amid an influx of fresh investor capital into the commodities sector and concerns that Organization of Petroleum Exporting Countries (OPEC) will not hike output next month. U.S crude slipped 61 cents to $99.40 a barrel. London Brent crude fell 68 cents to $97.88 a barrel.