Market seen opening firm; IIP, inflation data eyed

Key benchmark indices are likely to see a firm start on hopes the interim budget for 2009-10 on 16 February 2009 may offer tax sops and sector-specific stimulus package. Also further rate cut from central bank post inflation at one-year low may also boost sentiment. The SGX Nifty futures for February 2009 series rose 9 points in Singapore.

Inflation data for the 12 month period to 31 January 2009 will be released today, 12 February 2009. Also the index of industrial production (IIP) data for December 2008 will be released today, 12 February 2009. The IIP for the November 2008 stood at 2.4%, compared to contraction of 0.4% in October 2008.

Global cues were mixed. Asian markets slipped as weak trade data from China and an overnight slide in crude oil prices
outweighed a compromise deal on the massive US stimulus plan. Japan's Nikkei 225 fell 2.34% or 186 points at 7759.67, Hong Kong's Hang Seng lost 1.20% or 163 points at 13,376, South Korea's Seoul Composite fell 1.22% or 14.49 points at 1175.69, Singapore's Straits Times tumbled 1.01% or 17.36 points at 1704.61, Taiwan's Taiwan Weighted was down by 0.50% or 22.74 points at 4553.21 and China's Shanghai Composite fell 0.36% or 8.22 points at 2252.60.

US stocks gained on Wednesday, 11 February 2009 as lawmakers said Congress will reach an agreement on a $789 billion plan to revive the economy and investors snapped up bank shares trading near the lowest valuation on record. The Dow Jones Industrial Average rose 50.65 points, or 0.6% to 7,939.53. The S&P 500 added 6.58 points or 0.8% to 833.74 and the Nasdaq Composite index gained 5.77 points or 0.38% to 1,530.50.

Back home, despite the sharp intraday recovery key benchmark indices ended slightly lower on Wednesday, 11 February 2009, ending three-day winning streak. The BSE 30-share Sensex fell 28.93 points or 0.3%, to 9,618.54 and the S&P CNX Nifty slipped 8.8 points, or 0.3%, to 2,925.70.

According to provisional data on NSE, FIIs were net sellers worth Rs 34.76 crore while mutual funds sold shares worth Rs 75.27 crore on Wednesday, 11 February 2009.

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.