Market seen lower in volatile trade

Key benchmark indices are likely to extending two-day losses further mirroring weak global cues. Volatility may remain high today as December series F&O contracts expiry today, 24 December 2008.

As per reports, rollover of Nifty positions from December 2008 series to January 2009 series stood at 53% while marketwide rollover stood at 55%, as of Monday, 22 December 2008.

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. Market remains closed on Thursday, 25 December 2008 on account of Christmas.

Most Asian markets were trading lower today, 24 December 2008. China's Shanghai Composite plunged 0.58% or 11.03 points at 1,886.20, Hong Kong's Hang Seng was down 1.49% or 212.39 points at 14,008.40, Japan's Nikkei fell 2.69% or 234.83 points at 8,488.95, South Korea's Seoul Composite slipped 1.79% or 20.43 points at 1,123.88, Taiwan's Taiwan Weighted declined 0.37% or 16.43 points at 4,389.43. However, Singapore's Straits Times was up 0.36% or 6.18 points at 1,730.72.

In the US markets, stocks there ended lower on Tuesday, 23 December 2008 after concerns on the future of the big 3 US auto majors continued to hover. The Dow Jones slipped 100.28 points, or 1.18%, to 8,419.49. The S&P 500 index shed 8.47 points, or 0.97%, to 863.16. The Nasdaq composite index slipped 10.81 points, or 0.71%, to 1,521.54.

Back home, bears were in command on Tuesday, 23 December 2008 as market declined for the second straight day on setback in Asian stocks and caution ahead of the expiry of the near month derivatives contracts. The BSE 30-share Sensex lost 241.60 points, or 2.43%, to 9,686.75 and the S&P CNX Nifty was down 70.65 points, or 2.32%, to 2,968.65, on that day.

Foreign institutional investors (FIIs) were net sellers worth Rs 264.05 crore while mutual funds bought shares worth Rs 88.18 crore on Tuesday, 23 December 2008, according to provisional data on NSE.

US light crude for February 2009 delivery rose 27 cents to $39.25 a barrel aided by a weaker dollar and OPEC's talk of a possible emergency meeting should prices continue their descent.