Market may move up on local funds boost

The market may open higher today, 31 March 2008 extending its rally on Friday, 28 March 2008. Also year-end net asset value (NAV) boosting exercise from local mutual funds may boost the market. Asian markets were trading mixed today, 31 March 2008 while US markets closed lower on Friday, 28 March 2008.

Marketmen are keenly awaiting Q4 and full year March 2008 results from Indian corporates. Robust corporate advance tax payments in Q4 March 2008 indicate that corporate profit growth will be strong in the quarter. Advance tax figures showed banks, hospitality and software firms are doing better than sectors like automobiles and cement.

However, the sharp rise in inflation has been a cause of concern, which has now risen above the Reserve Bank of India’s caution limit of 5%. India's wholesale price index surged to 13-month to 6.68% in the 12 months to 15 March 2008, surging from the previous week's rise of 5.92%, government data showed on Friday, 28 March 2008.

Asian markets were trading mixed today, 31 March 2008. Hang Seng (down 1.12% at 23,025.72), Japan's Nikkei (down 1.50% at 12,627.83), Taiwan's Taiwan Weighted (down 1.19% at 8,520.84) declined. However, Singapore's Straits Times (up 0.15% at 3,036.47) and South Korea's Seoul Composite (up 0.03% to 1,700.85) rose.

US markets closed lower on Friday, 28 March 2008 after a profit warning from J.C. Penney renewed fears about slower consumer spending. The Dow Jones industrial average slipped 86.06 points, or 0.70%, to 12,216.40. The S&P 500 index was down 10.54 points, or 0.80%, to 1,315.22, and the Nasdaq Composite index declined 19.65 points, or 0.86%, to 2,261.18.

Back home, the 30-share BSE Sensex advanced 355.73 points or 2.22% at 16,371.29 on Friday, 28 March 2008. The broader CNX S&P Nifty was up 111.75 points or 2.31% at 4942 on that day.

The Sensex has now gained 1561.8 points or 10.54% from a recent low of 14809.49 on 17 March 2008.

The Sensex surged 1,376.46 points or 9.18% to 16,371.29 in the week ended Friday, 28 March 2008 on buying by foreign institutional investors and local funds. The S&P CNX Nifty rose 368.05 points or 8.04% to 4,942 in the week.

As per provisional data, foreign institutional investors (FIIs) purchased sold worth Rs 401.95 crore on Friday, 28 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 729.50 crore on that day.

FIIs were net sellers of Rs 132.21 crore in the futures & options segment on Friday, 28 March 2008. They were net sellers of index futures to the tune of Rs 366.53 crore and bought index options worth Rs 406.38 crore. They were net sellers of stock futures to the tune of Rs 184.53 crore and bought stock options worth Rs 12.47 crore.