Market seen opening firm on global cues

Positive global cues are likely to trigger a firm start in the key benchmark indices today, 16 January 2009 after seeing a savage cut in what was a equity global rout yesterday, 15 January 2009. The SGX Nifty index futures for January 2009 series rose 16 points in Singapore. However India's largest software services exporter TCS' lower-than-expected rise in quarterly profit reported after market hours on Thursday, 15 January 2009 may curtail gains.

Tata Consultancy Services posted 2.68% rise in net profit of Rs 1,362 crore for the quarter ended December 2008 over quarter ended December 2007. Revenues stood at Rs 7,277 crore for the reporting quarter, up 24.13% year-on-year. Market conditions were tough as global economic turmoil crimps outsourcing demand and puts pressure on fees, the company said.

Bajaj Auto, Federal bank, Jet Airways, and Hindustan Construction Company, among others will declare their Q3 December 2008 results today, 16 January 2009. Aggregate results of 83 companies showed 19.40% rise in net profit on a 36.60% increase in net sales in Q3 December 2008 over Q3 December 2007.

Asian markets were trading higher today, 16 January 2009, mirroring Wall Street. China's Shanghai Composite rose 2.08% or 40 points at 1,960.21, Japan's Nikkei advanced 1.27% or 101.62 points at 8,124.93, Singapore's Straits Times was up 0.50% or 8.54 points at 1,712.60, South Korea's Seoul Composite was flat at 1,111.99 and Taiwan's Taiwan Weighted gained 0.76% or 32.83 points at 4,353.60. However, Hong Kong's Hang Seng slipped 0.52% or 68.98 points at 13,173.98.

US stocks ended slightly higher on Thursday, 15 January 2009, recovering from an early slump, amid optimism the government will act to prevent the year-long recession from deepening, offsetting news that Bank of America was seeking fresh government aid, which fueled worries about the health of the financial sector.

The Dow Jones Industrial Average rose 12.67 points, or 0.15%, to 8,212.81. The S&P 500 Index gains 1.12 points, or 0.13%, to 843.74. The Nasdaq Composite Index rose 22.20 points, or 1.49%, to 1,511.84.

Back home, weak global equities and a deepening banking crisis in the United States pulled the domestic bourses lower in choppy trade on Thursday, 15 January 2009. The BSE 30-share Sensex lost 323.75 points or 3.45% at 9,046.74 and the S&P CNX Nifty lost 98.60 points or 3.48% at 2,736.70

Foreign institutional investors (FIIs) were net sellers worth Rs 484.33 crore while mutual funds bought shares worth Rs 175.12 crore on Thursday, 15 January 2009, according to provisional data on NSE.