Market seen opening firm

Key benchmark indices are likely open firm mirroring positive Asian indices. Also reports of the government working on a second stimulus package for the current fiscal may boost the sentiment. Also year end net asset value boosting exercise aid gains.

Reportedly the second stimulus package of 2009-10 is aimed at spurring growth in the wake of the slowdown owing to the global financial crisis. Planning Commission Deputy Chairman Montek Singh Ahluwalia said after market hours on Monday, 29 December 2008, he hopes the second stimulus package will be announced in the next few days

Trading may turn remain lacklustre amid the ongoing holiday season and festivities across the world, which is likely to impact trading volumes at the bourses. Mutual funds bought shares worth Rs 243.21 crore while foreign institutional investors (FIIs) were net buyers worth Rs 4.42 crore on Monday, 29 December 2008, according to provisional data on NSE.

Most Asian markets were trading higher today, 30 December 2008. China's Shanghai Composite was up 0.38% or 7.07 points at 1,857.55, Hong Kong's Hang Seng rose 0.60% or 86.53 points at 14,415.01, Japan's Nikkei gained 1.28% or 112.39 points at 8,859.56, South Korea's Seoul Composite advanced 1.63% or 18.27 points at 1,135.86, Taiwan's Taiwan Weighted surged 3.13% or 138.12 points at 4,554.28. However, Singapore's Straits Times was down 0.43% or 7.71 points at 1,772.86.

US markets declined on Monday, 29 December 2008 after Kuwait scrapped $ 17.4 billion petrochemical joint-venture with Dow Chemicals. The Dow Jones industrial average slipped 31.62 points, or 0.37%, to 8,483.93. The S&P 500 index fell 3.38 points, or 0.39%, to 869.42; the Nasdaq composite index fell 19.92 points, or 1.30%, to 1,510.32.

Oil prices rose on Monday, 29 December 2008 amid concern that Israeli attacks on Hamas could disrupt Middle East crude oil supplies, but economic troubles limited gains. US light, sweet crude was up 18 cents at $37.89 a barrel.