Market likely to see gap-up opening

Key benchmark indices are geared for gap-up opening today, 29 August 2008 boosted by unexpected slide in inflation rate. Global cues were strong. Derivative contracts for August 2008 series expired yesterday, 28 August 2008 with strong rollovers.

Meanwhile all eyes will now be on the GDP growth numbers for Q1 June 2008 which will announced by the government today, 29 August 2008. Moody's has projected that India's economic growth would decelerate to 7.9% in the current fiscal from 9% in 2007-08, on the backdrop of rising interest rates and slow credit growth.

Inflation for the week ended 16 August 2008 slipped to 12.40% from 12.63% in the previous week.

Derivative contracts for August 2008 series expired yesterday, 28 August 2008 with strong rollovers. As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 83% as while that of Nifty was at 75%. marketwide rollover of positions stood at 79% as while that of Nifty was at 65% in previous series.

US crude lost $2.56 at $115.59 barrel, yesterday, 28 August 2008 after the US government and the International Energy Agency pledged to release emergency stockpiles if Tropical Storm Gustav disrupted US oil production.

Asian markets were trading higher today, 29 August 2008. China's Shanghai Composite rose 0.39% or 9.21 points at 2,359.35, Japan's Nikkei advanced 2.19% or 179.37 points at 13,047.62, Hong Kong's Hang Seng gained 1.98% or 415.40 points at 21,387.69, Taiwan's Taiwan Weighted was up 0.24% or 17.20 points at 7,050.57, Singapore's Straits Times added 1.21% or 32.56 points at 2,723.56, and South Korea's Seoul Composite surged 0.31% or 4.53 points at 1,478.68

US markets rallied yesterday, 28 August 2008 on stronger than expected GDP growth and a drop in oil prices. Second quarter GDP came in at a better than expected 3.3%. Weekly jobless claims also dipped. The Dow Jones industrial average surged 212.67 points, or 1.85%, to 11,715.18. The S&P 500 index rose 19.02 points, or 1.48%, to 1,300.68, and the Nasdaq Composite index advanced 29.18 points, or 1.22%, to 2,411.64.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 187.19 crore while mutual funds purchased shares worth Rs 390.62 crore on Thursday, 28 August 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 19.97 crore in the futures & options segment on Thursday, 28 August 2008. They were net sellers of index futures to the tune of Rs 376.27 crore and purchased index options worth Rs 509.45 crore. They were net sellers of stock futures to the tune of Rs 142.17 crore and bought stock options worth Rs 28.95 crore.

Heavy selling in late trade on concerns of high inflation and rising crude oil prices, saw benchmarks end sharply lower yesterday, 28 August 2008. The BSE Sensex lost 248.45 points or 1.74% to 14,048.34, and the S&P CNX Nifty fell 78.1 points or 1.82% to 4214.