Market seen range-bound on mixed global cues

Key benchmark indices may see ranged activity and try to catch up with its global peers as it reopens after remaining shut on Tuesday, 9 December 2008 for Bakri Eid festial. Global cues were mixed with Asian markets rising today and those of the US declining overnight. The SGX November 2008 Nifty futures was up 68 points.

Meanwhile, the global economic slowdown has impacted the Indian manufacturing sector, which has cut output in the last few months and this trend is expected to continue in coming months, according to a survey by industry body Federation of Indian Chambers of Commerce and Industry (Ficci). The survey found that the manufacturing slow down is likely to continue till March 2009, which might result in job losses.

Asian markets were trading higher today, 10 December 2008, extending gains for the fourth straight day on optimism that stimulus plans will boost the global economy. China's Shanghai Composite rose 1.02% or 20.88 points at 2,058.62, Hong Kong's Hang Seng gained 2.34% or 345.71 points at 15,098.93, Japan's Nikkei advanced 1.14% or 95.68 points at 8,491.55, Singapore's Straits Times was up 0.73% or 12.73 points at 1,767.31, South Korea's Seoul Composite surged 2.79% or 30.87 points at 1,136.71 and Taiwan's Taiwan Weighted added 2.31% or 103.26 points at 4,575.92.

US markets declined on Tuesday, 9 December 2008 as profit warnings from FedEx Corp and others prompted investors to retrench after two days of big gains, while unprecedented demand for the safety of government securities signaled that fear remains a dominant force in the market.

The Dow plunged 242.85 points, or 2.72%, to 8,691.33. The S&P 500 index declined 21.03 points, or 2.31%, to 888.67. The Nasdaq Composite index fell 24.40 points, or 1.55%, to 1,547.34.

Back home, doubts as to how much stimulus the already stretched government budget will be able to finance, curtailed early gains on Monday, 8 December 2008. The BSE 30-share Sensex rose 197.42 points or 2.2% to 9,162.62 and the S&P CNX Nifty gained 69.60 points or 2.56% at 2784, on that day.

Foreign institutional investors (FIIs) were net buyers worth Rs 350.34 crore while mutual funds sold shares worth Rs 617.05 crore on Monday, 8 December 2008, according to provisional data on NSE.

US crude for January 2009 delivery rose $1.26 at $43.33 a barrel today, 10 December 2008 on bargain hunting