Market seen opening lower on negative global cues

Key benchmark indices are likely open lower mirroring negative global cues. However optimism about the government's second fiscal stimulus package soon and the central bank's further rate cut to ease the ongoing liquidity crunch may cushion sharp fall.

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 sold shares worth Rs 6.95 crore while foreign institutional investors (FIIs) were net sellers worth Rs 344.91 crore on Friday, 26 December 2008, according to provisional data on NSE.

Most Asian markets were trading lower on concern that intensifying recessions worldwide will hurt corporate profits. China's Shanghai Composite was down 1.26% or 23.41 points at 1,828.10, Hong Kong's Hang Seng plunged 1.36% or 193.03 points at 13,991.11, Japan's Nikkei slipped 0.805 or 69.58 points at 8,669.94, South Korea's Seoul Composite fell 2.80% or 31.25 points at 1,086.61 and Taiwan's Taiwan Weighted declined 0.80% or 35.26 points at 4,389.82. However, Singapore's Straits Times was up 0.70% or 12.03 points at 1,737.67.

US markets ended lower on Friday, 26 December 2008 after the Big Three automakers had their debt ratings cut despite the bailout package unveiled by White House last week. The Dow Jones Industrial Average slipped 59.42 points, or 0.7%, to 8,519.69 after sliding over 200 points in intra-day trade. The Standard & Poor's 500 Index slipped 16.25 points or 1.8% to 871.63 and the Nasdaq Composite Index slid 31.97 points, or 2%, to 1,532.35.

US light, sweet crude gained $1.77 to $39.48 today, 29 December 2008 after weekend violence flared between Israel and Hamas, reminding traders of the geopolitical risk to crude supplies from the Middle East.