Market seen lower

Key benchmark indices are likely to open lower today, 10 February 2009, snapping tow day gains, on negative global cues after the US Treasury postponed a bank-rescue plan to Tuesday, indicating that it could see some tweaking. The SHX Nifty futures in Singapore was down 7 points.

Asian indices were mixed today, 10 February 2009 on speculation fuel costs will decline, countering declines in the region by shares of commodity producers. China's Shanghai Composite was down 0.17% or 3.71 points at 2,221, South Korea's Seoul Composite declined 0.64% or 7.68 points at 1,195.01. However, Hong Kong's Hang Seng rose 0.92% or 127.30 points at 13,896.36, Japan's Nikkei was up 0.19% or 15.51 points at 7,984.54, Singapore's Straits Times added 0.69% or 11.66 points at 1,694 and Taiwan's Taiwan Weighted gained 0.45% or 20.18 points at 4,514.77.

US stocks were little changed on Monday, 9 February 2009 as investors turned cautious after President Barack Obama's administration delayed an announcement of a key financial recovery plan. The Dow Jones industrial average fell 9.72 points, or 0.12%, at 8,270.87. The Standard & Poor's 500 Index rose 1.29 points, or 0.15%, at 869.89. The Nasdaq Composite Index fell 0.15 points, or 0.01%, at 1,591.56

An $838 billion economic stimulus bill backed by the White House narrowly advanced in the Senate on Monday, 9 February 2009 over strong Republican opposition, and Democratic leaders vowed to deliver the emergency legislation for President Barack Obama's signature within a few days. The vote was 61-36, one more than the 60 needed to move the measure toward Senate passage on Tuesday.

Meanwhile the US Treasury announced at the weekend that a banking stabilization plan scheduled to be unveiled on Monday had been postponed to Tuesday, amid indication that it could see some tweaking.

Expectations an interim budget will contain fiscal incentives to revive sagging growth helped market surge in the past tow trading sessions. Media reports that the forthcoming interim budget may offer tax sops and sector-specific stimulus package boosted the domestic bourses.

The Congress party-led coalition government will unveil an interim railway budget on Friday, 13 February 2009 followed by a mini general budget on 16 February 2009, ahead of national elections due by May 2009. A full budget for 2009-2010 will come only after a new government takes over. Foreign Minister Pranab Mukherjee, who is also responsible for finance and will present the mini budget, said on Friday, the government would take measures to boost growth, especially in sectors where jobs are at stake.

The government has so far announced two stimulus packages including tax cuts and the capital injections for banks. But poor corporate earnings and concerns of economic slowdown continues to weigh on the market sentiment.

The government is scheduled to release its official gross domestic product (GDP) estimate for 2008-2009 today, 9 February 2009, followed by December 2008 industrial production data on Thursday, 12 February 2009. The Reserve Bank of India expects the economy to expand seven per cent in 2008-09, the slowest pace in six years.

According to provisional data on NSE, FIIs were net buyers worth Rs 285.39 crore while mutual funds sold shares worth Rs 45.98 crore on Monday, 9 February 2009.