Market seen higher in lacklustre trade, inflation data eyed

Key benchmark indices are likely open firm mirroring positive global cues. However there is a possibility of dip in trading volumes due to a likely decline in foreign institutional participation on account of the Christmas and New Year celebrations.

In that case, domestic institutions are expected to play a key role in determining the market direction. Mutual funds bought shares worth Rs 613.98 crore while foreign institutional investors (FIIs) were net sellers worth Rs 144.26 crore on Wednesday, 24 December 2008, according to provisional data on NSE.

Inflation data in the 12 months to 13 December 2008 about to be released by noon today, 26 December 2008 will be keenly watched.

F&O contracts for December 2008 series expired on Wednesday, 24 December 2008. As per reports, rollover of Nifty positions from December 2008 series to January 2009 series stood at 66.5% while marketwide rollover stood at 76%.

Market remained closed on Thursday, 25 December 2008 on account of Christmas. Weak global markets and signs of further deterioration in the world economy weighed on the bourses on Wednesday, 24 December 2008. The BSE 30-share Sensex slipped 118.03 points, or 1.22%, to 9,568.72 and the S&P CNX Nifty was down 51.80 points, or 1.74%, to 2,916.85, on that day.

Most Asian markets were trading firm today, 26 December 2008. China's Shanghai Composite was up 0.22% or 4.01 points at 1,856.43, Japan's Nikkei surged 1.12% or 96.27 points at 8,695.77, Singapore's Straits Times gained 0.55% or 9.52 points at 1,746.51, Taiwan's Taiwan Weighted rose 1.11% or 48.99 points at 4,462.44. However, South Korea's Seoul Composite was down 0.12% or 1.41 points at 1,127.10.

Wall Street ended on a quiet note on Wednesday, 24 December 2008, ending five-day losing streak on better than expected durable goods and consumer spending. The Dow Jones gained 48.99, or 0.58%, to 8,468.48. The S&P 500 index futures advanced 4.99 points, or 0.58%, to 868.15, and the Nasdaq composite index rose 3.36 points, or 0.22%, to 1,524.90.

Crude oil prices rebounded in Asian trade today, 26 December 2008 after tumbling to four-year lows before the Christmas break, with economic gloom weighing on the market. New York's main contract, light sweet crude for February 2009 delivery, rose 93 cents to $36.28 dollars.