Market seen opening firm on positive global cues

Key benchmark indices are likely to open higher mirroring positive global cues. Asian stocks gained today, 4 January 2009 as the region`s automakers strengthened their market share in the US and memory-chip prices advanced. Key benchmark indices in China, hang Seng, Taiwan, Japan, and Singapore, were up by between 0.62% and 2.21%.

US stocks rose on Tuesday, 3 February 2009, after better-than-expected US pending home sales data boosted sentiments about the economy. The Dow Jones industrial average advanced 141.53 points, or 1.78%, to end at 8,078.36. The Standard & Poor`s 500 index climbed 13.07 points, or 1.58%, to settle at 838.51. The Nasdaq Composite index increased 21.87 points, or 1.46%, to close at 1,516.30.

Back home, the market ended the volatile session marginally higher Tuesday (3 February 2009) amid intraday fluctuations. The BSE 30-share Sensex was up 82.60 points, or 0.91%, to 9,149.30 and the S&P CNX Nifty up 17.25 points, or 0.62%, to 2,783.90.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 4262.30 crore (till 2 February 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 278.89 crore while mutual funds sold shares worth Rs 7.75 crore on Wednesday, 3 February 2009.

Oil prices rose on Tuesday, 3 February 2009, on speculation that reduced OPEC production in January will limit global inventories and encourage prices. Light, sweet crude for March delivery rose 70 cents to settle at $40.78 a barrel on the New York Mercantile Exchange (NYMEX).