Market seen range-bound on mixed global cues

Key benchmark indices are likely to open lower as the SGX Nifty futures for February 2009 series was down 17 points in Singapore. GDP data for the third quarter ended December 2008, to be released by noon, will be closely watched. Global cues were mixed.

Economic rose at a pace of 7.6% in the September 2008 quarter and 7.9% in the June 2008 quarter.

Volatility was high on Thursday, 26 February 2009 as February series F&O expired. As per reports, rollover of Nifty positions from February 2009 series to March 2009 series stood at 76% while marketwide rollover of positions was 75%.

Inflation dropped to a 14-month low of 3.36% in the week ended 14 February 2009, government data released on Thursday, 26 February 2009 showed. There are expectations that the Reserve Bank of India (RBI) will cut interest rates further to support faltering growth. A sharp fall in inflation to 14-month low in the week ended 14 February 2009, raised speculation of the central bank having more room to cut rates.

Asian markets were trading mixed today, 27 February 2009, as technology companies gained on brokerage upgrades and commodity shares advanced on higher metal prices. Key benchmark indices in Hong Kong, Taiwan, Singapore, and Japan were up by between 0.47% and 1.11%. Indices in China and South Korea were down 1.92% and 0.37%.

US markets ended lower on Thursday, 26 February 2009, in volatile trade as a spate of sour economic data and worries that President Obama's budget proposal will strangle profits forced investors to sell off stocks across the board. The Obama administration sees the FY09 deficit at $1.75 trillion.

The Dow Jones industrial average declined 88.81 points, or 1.2%, to 7,182.08. The S&P 500 index slipped 12.07 points, or 1.6%, to 752.83 and the Nasdaq Composite index lost 33.96 points, or 2.4%, to 1,391.47.

Obama proposed almost $1 trillion in higher taxes over the next decade on the highest-earning Americans, Wall Street financiers, US-based multinational corporations and oil companies to pay for permanent tax breaks for lower earners.

According to provisional data on NSE, FIIs were net sellers worth Rs 384.37 crore while mutual funds bought shares worth Rs 367.84 crore on Wednesday, 25 February 2009.