Market braced for higher opening

Local equities are geared for firm start following positive global cues. The cooling of crude oil prices, which had soared to record high near $126 a barrel, will also boost the sentiment further.

The South-West monsoon is likely to hit Kerala on 29 May 2008, the Indian Meteorological Department (IMD), yesterday, 14 May 2008, said. Initial forecast by the Indian Meteorological Department (IMD) suggest that the crucial South-West monsoon (June-September) this year will be near normal. Now IMD's second forecast in June 2008 which may also indicate spatial rainfall distribution in the main sowing season of July 2008, is crucial.

A well distributed monsoon will bolster food production which in turn will help rein in inflation which is currently ruling at a three-year high. Surging global food prices has been a key driver of soaring inflation in India in recent weeks. Agricultural output in India depends on good rains.

Asian markets were trading higher today, 15 May 2008, led by technology companies, after Sony and NEC Electronics forecast higher profit than expected. Shanghai Composite (up 0.74% at 3,684.45), Hang Seng (up 0.34% at 25,621.09), Nikkei 225 Average (up 1.03% at 14,263.41), Straits Times (up 0.43% at 3,212.15), Seoul Composite (up 1.58% at 1,872.80), Taiwan Weighted (up 0.94% at 9,102.84) edged higher.

US stocks climbed on Wednesday, 14 May 2008, after a better-than-expected report on consumer prices eased some of the market`s concerns about inflation. The Dow Jones industrial average rose 66.20 points, or 0.51, to 12,898.38. The Nasdaq Composite index rose 1.58 points, or 0.06%, to 2,496.70.

Back home, frenzied buying in software and metal stocks in late trade propelled market higher after a nervous start yesterday, 14 May 2008. The 30-share BSE Sensex surged 225.49 points or 1.36% at 16,978.35 while the broader based S&P CNX Nifty gained 53.95 points or 1.09% at 5,011.75, on that day.

As per provisional data, foreign funds purchased shares worth a net Rs 85.12 crore yesterday, 14 May 2008. Domestic funds bought shares worth a net Rs 310.41 crore on that day.

Meanwhile, excise duty collection by the government fell by 3.9% to Rs 6,410 crore in the April 2008 against Rs 6,673 crore in April 2007. However, customs duty collection grew 24.9% to Rs 9,018 crore in April 2008 as against Rs 7,221 crore in April 2007, because of high growth in imports.

U.S. light crude for June delivery was down 48 cents a barrel at $123.74 today, 15 May 2008, as rising U.S. distillates stocks and Iran's reassurances that it would not cut crude exports added to a strengthening U.S. dollar to limit the upside.