Market to open lower

Key benchmark indices may open lower tracking weak cues from overseas markets. US light crude for September delivery rose 77 cents at $125.87 today, 4 August 2008, on supply worries, lifted by concern over Iran's nuclear activities, further violence in Nigeria, and a tropical storm that has formed near the Gulf of Mexico.

With the Q1 June 2008 earnings season over, there is lack of any major near term trigger for the domestic bourses. Aggregate results of 1977 companies showed 37.3% rise in net profit on 5.1% rise in net sales in Q1 June 2008 over Q1 June 2007.

Asian markets were trading lower today, 4 August 2008. China's Shanghai Composite fell 1.17% or 32.73 points at 2,769.08, Japan's Nikkei slipped 1.02% or 133.53 points at 12,961.06, Hong Kong's Hang Seng plunged 0.99% or 227.26 points at 22,635.34, Taiwan's Taiwan Weighted slipped 0.30% or 21.02 points at 6,981.52, Singapore's Straits Times was down 1.07% or 31.02 points at 2,875.05, and South Korea's Seoul Composite lost 2.48% or 39.03 points at 1,534.74.

Stocks fell on Wall Street on Friday, 1 August 2008 pushed by billions in losses at largest US automaker General Motors, higher unemployment figures and rising oil prices. The blue-chip Dow Jones Industrial Average dropped 51.70 points, or 0.5%, to 11,326.32. The broader Standard & Poor's 500 Index fell 7.07 points, or 0.6%, to 1,260.31. The technology- heavy Nasdaq Composite Index lost 14.59 points, or 0.6%, to 2,310.96.

Back home, local benchmark indices advanced on Friday, 1 August 2008 brushing aside weak global cues, as prospects of the Indo-US nuclear being operationalised took centre stage after the UN nuclear watchdog endorsed that India met all safeguard standards. The Bombay Stock Exchange's Sensex surged 300.94 points or 2.10% to 14,656.69,and the National Stock Exchange's Nifty ended gained 80.60 points or 1.86% to at 4413.55, on that day.

Deputy Finance Minister Pawan Kumar Bansal said that the coalition government has the support to push through three major reforms in the banking, insurance and pension sectors in the next parliamentary session, which is likely to begin on 11 August 2008.

The 30-share BSE Sensex rose 381.75 points or 2.67% to 14,656.69 and the CNX S&P Nifty rose 101.7 points or 2.35% to 4413.55, in the week ended 1 August 2008.

Foreign institutional investors were net sellers of equities worth Rs 587.28 crore while mutual funds net bought Rs 396.34 crore of equity on Friday, 1 August 2008, according to provisional data on NSE.

Foreign institutional investors (FIIs) were net buyers of Rs 196.55 crore in the futures & options segment on 1 August 2008. They were net buyers of index futures to the tune of Rs 460.53 crore and bought index options worth Rs 341.77 crore. They were net sellers of stock futures to the tune of Rs 732.50 crore and purchased stock options worth Rs 126.46 crore