Market seen range-bound amid volatility

Key benchmark indices are likely to see range activity on mixed global cues. However rise in crude oil prices may weigh on the sentiment. Volatility may remain high ahead of the expiry of derivative contracts for the August 2008 on Thursday, 28 August 2008.

As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 40% while that of Nifty was at 37%, as of Tuesday, 26 August 2008.

Meanwhile, even as signals of a growth slowdown are discernible in the wake of surging inflation and high interest rates, Finance Minister P. Chidambaram yesterday, 26 August 2008 expressed confidence that the economy would be back on track by the second half of 2009-10. He added the industry should look positively to an 8-9% growth which is here to stay.

On the New York Mercantile Exchange, October crude rose $1.16 at $116.27 per barrel yesterday, 26 August 2008 as oil companies began preparing against Hurricane Gustav, which is forecast to enter the US Gulf of Mexico as a major storm this weekend..

Asian markets were trading mixed today, 27 August 2008. Key benchmark indices in China, Japan, Singapore, and South Korea were down by between 0.01% and 1.27%. However indices in Hong Kong and Taiwan rose 0.54% and 1.71% respectively.

US markets ended mixed yesterday, 26 August 2008 as hurricane fears lifted oil prices and boosted energy shares and Citigroup analysts said Fannie Mae and Freddie Mac have enough capital to last the year. However, gains were capped after a report from the US Federal Deposit Insurance Corporation said 117 US banks were on its 'troubled banks' list at the end of the second quarter, up from 90 after the first three months of the year.

The Dow Jones Industrial Average rose 26.62 points, or 0.23% at 11,412.87, the Standard & Poor's 500 Index gained 4.66 points, or 0.37%, at 1,271.50. However the Nasdaq Composite index fell 3.62 points, or 0.15% at 2,361.97.

Back home, stocks ended choppy trading session slightly higher yesterday, 26 August 2008, boosted by fall in crude oil prices and reports of a near normal monsoon. The BSE 30-share Sensex rose 31.87 points or 0.22% to 14,482.22 and the S&P CNX Nifty rose 2.15 points or 0.05% at 4337.50, on that day.

The BSE Sensex is down 5804.77 points or 28.61% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6724.55 points or 31.70% away from its all-time high of 21,206.77 struck on 10 January 2008.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 572.04 crore while mutual funds purchased shares worth Rs 276.92 crore on Tuesday, 26 August 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 80.14 crore in the futures & options segment on Tuesday, 26 August 2008. They were net buyers of index futures to the tune of Rs 8.19 crore and purchased index options worth Rs 22.02 crore. They were net sellers of stock futures to the tune of Rs 24.45 crore and bought stock options worth Rs 74.38 crore.