Market may open subdued

The market may open on a subdued note tracking weak US markets overnight, 10 March 2008. Asian markets started the day on a weak note, but some indices saw recovery. The next trigger for the market would come from the figures of advance tax payment by corporates for the fourth installment, which falls due on 15 March 2008.

All eyes will now be the US Federal Reserve which meets on 18 March 2008 to review interest rates. A cut in interest rate, as expected by street may provide some support to the markets. Fed Chairman Ben Bernanke had signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks.

Asian markets were trading mixed today, 11 March 2008. Japan's Nikkei (up 0.14% at 12,549.33), Taiwan's Taiwan Weighted (up 0.26% at 8,321.30) rose. However, Hong Kong's Hang Seng (down 1.40% at 22,387.60), Straits Times (down 0.86% at 2,812.22), Shanghai Composite (down 0.96% to 4,106.70), and South Korea's Seoul Composite (down 0.12% at 1,623.21) declined.

US markets slumped for the third straight day on Monday, 10 March 2008 led by a plunge in financial shares as a fresh wave of credit worries rattled the market. Bear Stearns tumbled amid news that the brokerage firm has liquidity problems. The Dow Jones industrial average plunged 153.54 points, or 1.29%. The Standard & Poor's 500 index was down 20 points or 1.55%, to 1,273.37, while the Nasdaq Composite index declined 43.15 points, or 1.95%, to 2,169.34.

Back home, the two niche indices, BSE Sensex and S&P CNX Nifty, saw divergent trend on Monday, 10 March 2008 with the later posting gains helped by spurt in non-Sensex constituents. The 30-share BSE Sensex declined 51.80 points or 0.32% at 15,923.72. The broader based S&P CNX Nifty gained 28.80 points or 0.60% at 4,800.40 on that day.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 1248.04 crore on Monday, 10 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 758.79 crore on that day.

FIIs were net sellers of Rs 1,003.16 crore in the futures & options segment on Monday, 10 March 2008. They were net sellers of index futures to the tune of Rs 626.53 crore and sold index options worth Rs 140.74 crore. They were net sellers of stock futures to the tune of Rs 225.28 crore and sold stock options worth Rs 10.62 crore.

Crude oil was slightly lower today, 11 March 2008, just below its record high of $108.21 yesterday, 10 March 2008, as investors hedged against growing inflation and the falling dollar. U.S. light crude for April delivery fell 5 cents to $107.85 a barrel, a barrel in the previous session. London Brent crude was down 11 cents to $104.05.