Equities seen firm on muted turnover

Key benchmark indices are likely to open firm tracking gains in Asian indices. However trading volumes may take a hit for the second running day, as most global markets remain shut on account of New Year celebrations.

Asian markets were trading firm today, 2 January 2008 amid speculation government policies will help shelter the region from the global recession. Hong Kong's Hang Seng rose 1.68% or 242.27 points at 14,629.75, Singapore's Straits Times gained 1.60% or 28.16 points at 1,789.72 and South Korea's Seoul Composite was up 0.42% or 4.74 points at 1,129.21. Other key Asian markets including Japan, China, Taiwan are closed today, 2 January 2009 on account of New Year celebrations.

US markets also remained shut on Thursday, 1 January 2008, on account of New Year celebrations.

Back home, mutual funds bought shares worth Rs 160.41 crore while foreign institutional investors (FIIs) were net buyers worth Rs 92.04 crore on Thursday, 1 January 2009, according to provisional data on NSE.

Buying in bluechip shares in the interest rate sensitive banking, auto and realty sectors propelled the key benchmark indices higher on the first day of the new calendar year 2009. The BSE 30-share Sensex advanced 256.15 points, or 2.66%, to 9,903.46 and the S&P CNX Nifty gained 74.30 points, or 2.51%, to 3,033.45 on Monday, 1 January 2009.

Turnover may take a hit for the second running day today, 2 January 2009. The total turnover on the BSE amounted to Rs 3076 crore on 1 January 2009, much lower than Rs 3746 crore on Wednesday, 31 December 2008. Turnover in NSE's futures & options (F&O) segment also dipped to Rs 22,397.66 crore on 1 January 2009, lower than Rs 30,033.26 crore on Wednesday, 31 December 2008.