Market may open firm

The market is expected to open firm today, as buying may continue after yesterday’s (25 March 2008), sharp rally. Also year-end net asset value (NAV) boosting exercise from local mutual funds may lift the sentiment. US markets were mixed yesterday, 25 March 2008. Asian markets opened mixed today, 26 March 2008.

Volatility may increase on the bourses this week ahead of the expiry of March 2008 derivative contracts on Thursday, 27 March 2008. As per reports, the marketwide rollover of derivative positions from March 2008 series to April 2008 series stood at 38%, while that of Nifty was 41%.

The sharp rise in inflation may be a cause of concern, which has now risen above the Reserve Bank of India’s caution limit of 5%. As per data released on Thursday, 20 March 2008, inflation had surged to over 11-month high of 5.92% for the week ended 8 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.

Asian markets were trading mixed today, 26 March 2008. Hong Kong's Hang Seng (up 0.76% at 22,636.29), Straits Times (up 0.03% to 3,002.33), and South Korea's Seoul Composite (up 0.13% at 1,677.09) edged higher. However, Japan's Nikkei (down 0.88% at 12,632.80) and Taiwan's Taiwan Weighted (down 0.22% at 8,777.95), slipped.

US markets took finished mixed yesterday, 25 March 2008, despite weak economic news. The Dow Jones industrial average declined 16.04 points, or 0.13%, to 12,532.60. The S&P added 3.11 points, or 0.23%, to 1,352.99; the Nasdaq gained 14.30 points, or 0.61%, to 2,341.05. Consumer confidence fell sharply in March 2008 with the Consumer confidence index (CCI) slumping to a five-year low of 64.5.

Back home, the 30-share BSE Sensex rose 928.09 points or 6.07% to 16,217.49, its second biggest single-day rally in points as well as percentage terms. The broader CNX S&P Nifty jumped 267.65 points or 5.81% at 4877.50.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 1246.12 crore on Tuesday, 25 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 399.97 crore on that day.

FIIs were net buyers of Rs 2,004.99 crore in the futures & options segment on Tuesday, 25 March 2008. They were net buyers of index futures to the tune of Rs 1,529.57 crore and bought index options worth Rs 80.17 crore. They were net buyers of stock futures to the tune of Rs 382.38 crore and bought stock options worth Rs 12.87 crore