Weak opening expected

The market is geared for weak opening tracking negative global cues. In absence of any near term major domestic trigger with Q4 March 2008 results almost over, market is likely to dance in line with global cues.

Aggregate results of 1886 companies showed 18.70% rise in net profit on 22.60% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 28.10% rise in net profit on 22% rise in net sales in the year ended March 2008 over year ended March 2007.

Expiry of May 2008 futures & options series on Thursday, 29 May 2008 will keep the market volatile in the coming days. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 32% and marketwide positions were 18%, as on 23 May 2008.

Asian markets were trading weak today, 26 May 2008. China's Shanghai Composite (down 1.69% at 3,414.32), Japan's Nikkei (down 2.23% at 13,699.85), Hang Seng (down 2.31% at 24,144.18), Taiwan Weighted (down 1.32% at 8,717.79), Singapore's Straits Times (down 1.06% at 3,088.98), and South Korea's Seoul Composite (down 1.73% at 1,796.23) edged lower

On Friday, 23 May 2008 US markets declined on concerns about a worsening housing recession and rising crude oil prices put renewed pressure on a market marred by worries that inflation will crimp consumption and further weaken the economy. The Dow Jones industrial average plunged 145.99 points, or 1.16%, to 12,479.63. The S&P 500 index declined 18.42 points, or 1.32%, to 1,375.93, and the Nasdaq Composite index fell 19.91 points, or 0.81%, to 2,444.67.

Back home, relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade on Friday, 23 May 2008. The 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty was down 78.9 points or 1.57% at 4,946.55, on that day.

The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 with the BSE Sensex plunging 785.30 points or 4.50% to 16,649.64 and the S&P CNX Nifty sliding 211.15 points or 4.09% to 4,946.55 in the week.

As per provisional data, foreign funds sold shares worth a net Rs 654.31 crore on Friday, 23 May 2008. Domestic funds bought shares worth a net Rs 750.03 crore on that day.

Foreign institutional investors (FIIs) were net sellers of Rs 1118.77 crore in the futures & options segment on Friday, 23 May 2008. They were net sellers of index futures to the tune of Rs 1006.88 crore and sold index options worth Rs 59.74 crore. They were net sellers of stock futures to the tune of Rs 62.53 crore and bought stock options worth Rs 10.38 crore.

Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on Friday, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.

Meanwhile, not satisfied with the United Progressive Alliance (UPA's) replies to their queries on the nuclear issue,the Left parties are likely to ask the government to finalise an India-specific safeguards agreement with International Atomic Energy Agency (IAEA) only after the 123 agreement with the US lapses.

The Left opposition to the 123 agreement is because they feel it was bound by the Hyde Act which was detrimental to India's sovereignty and its pursuance of an independent foreign policy. Further talks will be held in the UPA-Left Committee meeting to be held on 28 May 2008 to discuss the Indo-US nuclear deal.

Meanwhile as per results announced on 26 May 2008 for second round of elections in Karnataka Assembly, the Bharatiya Janata Party (BJP) won 110 seats out of 224, just short of a simple majority. The Congress has won 80 seats and the Janata Dal (Secular) claimed 28. Independents won six seats. In the 28 constituencies of Bangalore, the BJP has won 17 seats, the Congress won nine, and the JD(S) picked up one.