Market may head higher

The market may head higher today, 21 February 2008 following positive cues from global markets. The market may get boost after four public sector banks, led by State Bank of India (SBI), announced cut in the prime lending rates (PLR) by 0.25 to 0.50%, in a move that will make housing and auto loans cheaper. Union Bank of India, Bank of India and Canara Bank are the other banks to join SBI in cutting PLR.

For the second time in less than 10 days, the country's largest lender SBI slashed PLR by 0.25 per cent to 12.25%, which will be effective from today, 21 February 2008. The bank had announced, on 11 February, cutting the PLR by 0.25% effective from 16 February 2008.

Most Asian markets were trading firm today, 21 February 2008. Hong Kong's Hang Seng (up 1.41% at 23,923.60), Japan's Nikkei (up 2.12% at 13,592.51), Taiwan's Taiwan Weighted index (up 1.73% at 8,031.18), Singapore's Straits Times index (up 1.24% at 3,064.42) and South Korea's Seoul Composite index (up 0.92% at 1,703.38) edged higher.

However China’s Shanghai Composite slipped 1.10% to 4,516.90

US Market witnessed a rollercoaster ride but finally closed modestly higher on Wednesday, 20 February 2008. The day started on a pessimistic note with indices sliding down after a couple of weak economic reports. But in the second half, few comments from Fed chief shelved the concerns and the market turned upward to finish the day in positive ground. The Dow Jones industrial average gained 90.04 points, or 0.73%, to 12,427.26. The S&P 500 index rose 11.25 points, or 0.83%, to 1,360.03, and the Nasdaq Composite index advanced 20.90 points, or 0.91%, to 2,327.10.

Back home, the 30-share BSE Sensex slumped 458.06 points or 2.53% at 17,617.60 on Wednesday, 20 February 2008. The broader based S&P CNX Nifty was down 126.35 points or 2.39% at 5,154.45 on that day.

At current 17,617.60, Sensex trades at a PE multiple of 17.61 to 16.77, based on projected FY 2009 EPS of Rs 1000-to-Rs 1050 for 30 Sensex companies.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 266.44 crore on Wednesday, 20 February 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 256.18 crore on that day

FIIs were net sellers to the tune of Rs 527.15 crore in the futures & options segment on Wednesday, 20 February 2008. They were net sellers of index futures to the tune of Rs 707.91 crore and bought index options worth Rs 177.41 crore. They were net buyers of stock futures to the tune of Rs 6.51 crore and sold stock options worth Rs 3.16 crore.

Crude oil rose marginally today, 21 February 2008 after surging to a record over $101 a barrel on a gush of hedge fund inflows and Organisation of Petroleum Exporting Countries (OPEC) supply concerns. The new front-month U.S. crude for April delivery rose 21 cents to $99.91. The expired March 2008 contract struck a record high of $101.32 on Wednesday, 20 February 2008. London Brent crude rose 3 cents to $98.45 a barrel.