Mumbai terror attacks may dampen early sentiment

Key benchmark indices are likely to open lower today, 28 November 2008 in a knee-jerk reaction to terror attacks in Mumbai late on Wednesday, 26 November 2008 which reportedly claimed over 100 lives and injured over 300. Meanwhile, the SGX Nifty November 2008 futures were down 10 points. High volatility cannot be ruled out.

Sentiments remained fragile with stock exchanges remaining shut on Thursday, 27 November 2008. The Securities and exchange board of India (Sebi) Chairman CB Bhave, earlier today reportedly said that the stock exchanges have been asked to be ready to start trading. However, the final call on resuming trade will be taken later, the report added.

The GDP data for the July-September 2008 quarter due today, 28 November 2008 will be keenly watched.

The November 2008 derivative contracts which were to expire on Thursday, 27 November 2008, were also deferred till today, 28 November 2008. As per reports, the Nifty rollover of positions from November 2008 series to December 2008 series stood at 54% while marketwide rollover was 60%, by end of trading on Wednesday, 26 November 2008. The Nifty November 2008 futures ended 2757.85 on Wednesday, 26 November 2008, a premium of 5.60 points to spot closing of 2752.25.

Inflation based on the wholesale price index (WPI) rose 8.84% in the 12 months to 15 November 2008, a tad below the previous week's annual rise of 8.9%, data released by the government on Thursday, 27 November 2008, showed. Inflation has been softening ever since it struck a 16-year peak of 12.91% on 2 August 2008.

Asian markets were trading mixed today, 28 November 2008. China's Shanghai Composite was down 1.18% or 22.72 points at 1,895.14, Singapore's Straits Times declined 1.18% or 20.25 points at 1,690.27, Taiwan's Taiwan Weighted was down 0.03% or 1.14 points at 4,452.61. However, Hong Kong's Hang Seng rose 1.17% or 158.66 points at 13,710.72, Japan's Nikkei advanced 0.57% or 47.70 points at 8,421.09, South Korea's Seoul Composite added 0.80% or 8.54 points at 1,072.

Stock markets in US remained shut on Thursday, 27 November 2008 for Thanksgiving day.

The BSE Sensex gained 331.19 points or 3.81% to 9,026.72, and the NSE Nifty rose 98.25 points or 3.7% to 2752.25 on Wednesday, 26 November 2008, boosted by short covering of open positions and China's rate cut.