Market to open higher on global cues

The market open with a spurt tracking strong global cues. US markets surged overnight, 11 March 2008 following surprise move by US Federal Reserve to lend up to $200 billion in treasury securities. Asian markets opened on a strong note today, 12 March 2008.

The Index of Industrial Production (IIP) figures is due today, 12 March 2008.

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 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 strong today, 12 March 2008. Hong Kong's Hang Seng (up 2.84% at 23,648.71), Japan's Nikkei (up 2.70% at 12,999.84), Taiwan's Taiwan Weighted (up 1.83% at 8,535.10), Singapore's Straits Times (up 2.64% at 2,936.43) and South Korea's Seoul Composite (up 2.14% at 1,676.64) advanced.

US markets rallied the most in five years on Tuesday, 11 March 2008 after the US Federal Reserve decided to boost liquidity in order to shore up banks battered by mortgage- related losses. The US Federal Reserve announced that along with the European Central Bank and the central banks of Canada and Switzerland, it would loan investment banks money in exchange for debt, including mortgage-backed securities.

The Dow Jones industrial average jumped 416.66 points, or 3.6%, to 12,156.81. The Standard & Poor's 500 index advanced 47.28 points, or 3.7%, to 1,320.65, while the Nasdaq Composite index added 86.42 points, or about 4%, to 2,255.76.

Back home, the 30-share BSE Sensex gained 199.43 points or 1.25% at 16,123.15 on Tuesday, 11 March 2008. The broader based S&P CNX Nifty advanced 65.50 points or 1.36% at 4,865.90 on that day.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 539.24 crore on Tuesday, 11 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 303.36 crore on that day.

Crude oil eased slightly today, 12 March 2008 after hitting a record of $109.72 yesterday, 11 March 2008 as investors grappled with a boost to the dollar after the U.S. Federal Reserve and other central banks pumped fresh funds into the financial system. U.S. crude for April delivery fell 5 cents to $108.70 a barrel. London Brent crude fell 1 cent to $105.24.