Firm global cues may trigger positive start

Key benchmark indices are headed for a firm start today, 19 January 2009 tracking positive global cues. However high volatility may not be ruled out.

India's largest cigarette maker by sales ITC will declare its Q3 December 2008 results today, 19 January 2009. Meanwhile, aggregate results of 123 companies showed 7.60% rise in net profit on a 36.40% increase in net sales in Q3 December 2008 over Q3 December 2007.

Asian markets were trading higher today, 19 January 2009 led by higher commodity prices, US proposals to shore up the world`s largest economy. China's Shanghai Composite surged 2.19% or 42.84 points at 1,997.28, Hong Kong's Hang Seng rose 1.11% or 146.76 points at 13,402.27, Japan's Nikkei gained 0.76% or 62.92 points at 8,293.07, Singapore's Straits Times added 0.91% or 15.67 points at 1,746.12, South Korea's Seoul Composite was up 1.79% or 20.3 points at 1,155.5 and Taiwan's Taiwan Weighted rose 0.73% or 31.87 points at 4,397.97.

US stocks rose on Friday, 16 January 2009, after Bank of America received a new capital injection of $20 billion in exchange for stocks and a $118-billion asset guarantee from the Federal government. The Dow Jones industrial average advanced 68.73 points, or 0.84%, to 8,281.22. The Standard & Poor`s 500 index added 6.38 points, or 0.76%, to 850.12. The Nasdaq composite rose 17.49 points, or 1.16%, to 1,529.33.

Back home, key benchmark indices rallied on optimism that the US government will act to prevent the year-long recession from deepening also aided the surge on the domestic bourses and rescue of the largest US bank by assets, Bank of America. The BSE 30-share Sensex gained 276.85 points or 3.06% to 9,323.59 and the S&P CNX Nifty advanced 91.75 points or 3.35% to settle at 2828.45, on that day.

Foreign institutional investors (FIIs) were net sellers worth Rs 585.41 crore while mutual funds bought shares worth Rs 400.73 crore on Friday, 16 January 2009, according to provisional data on NSE.