Market seen opening firm

Key benchmark indices are likely to see firm start with the US lawmakers agreeing on a $700 billion bank-rescue package and the House of Representatives approving the nuclear deal with India, over the weekend.

Democratic congressional leaders supported on Sunday, 28 September 2008, a massive financial rescue plan proposed by the Bush administration, releasing a draft text trumpeting taxpayer guarantees and caps on executive compensation. The bill will be introduced in the House of Representatives today, 29 September 2008 and then head to the Senate.

The draft legislation would authorize $250 billion immediately, with another $100 billion upon presidential certification. A further $350 billion would also be available subject to congressional approval.

The Indo-US nuclear deal moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement. The deal on non-proliferation grounds was adopted with 298 voting for and 117 against.

Fall in oil prices may also lift the sentiment. US light crude for November delivery fell $1.09 to $105.85 a barrel today, 29 September 2008 pressured by gains in the US dollar.

Most Asian markets were trading lower today, 29 September 2008. Hong Kong's Hang Seng plunged 1.31% or 245.50 points at 18,436.59, Singapore's Straits Times was down 0.19% or 4.54 points at 2,406.92, South Korea's Seoul Composite fell 1.13% or 16.7 points at 1,459.63. However, Japan's Nikkei gained 0.46% or 54.49 points at 11,947.65.

The Dow Jones gained 121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up 3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index was down 3.23 points, or 0.15%, to 2,183.34.

Back home, indices tumbled on Friday, 26 September 2008 on uncertainty about the future of the US financial system. The BSE 30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.

Key benchmark indices suffered a severe setback in the week ended Friday, 26 September 2008, mirroring weak global market and amid impasse over the proposed $700 billion bailout deal for the US financial sector. The barometer index BSE Sensex lost 940.14 points or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or 6.12% at 3985.25, in the week.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 643.04 crore while mutual funds bought shares worth Rs 543.27 crore on Friday, 26 September 2008, according to provisional data on NSE. They were net buyers of Rs 173.23 crore in the futures & options segment on that day.