Markets likely to rebound

Key benchmark indices are likely to open on an upbeat note, snapping two-day decline, tracking recovery across global markets. The SGX Nifty futures for February 2009 series advanced 32.50 points in Singapore.

The Indian government unveiled its third stimulus package at the fag end of the day's trading session on Tuesday, 24 February 2009, which will further boost sentiment. The government cut factory gate duties and service taxes in an effort to boost demand and revive growth in economy as it reels under the impact of the global economic crisis. Stand-in finance minister Pranab Mukherjee announced a cut in excise duty and service tax by 2% each and extended a 4% reduction in excise duty, provided in the first stimulus package, beyond this fiscal-end. He also announced excise duty cut on bulk cement by 2% or Rs 60 per metric tonne, whichever is higher.

The Finance Minister added the government is confident to overcome the impact of the global economic crisis on the domestic economy.

Volatility is also likely to remain high ahead of the February series F&O expiry on Thursday, 26 February 2009. As per reports, rollover of Nifty positions from February 2009 series to March 2009 series stood at 54% while marketwide rollover of positions was 42%, as on Tuesday, 24 February 2009.

Asian stocks kicked off trade on a firm note today, 25 February 2009, taking relief from Bernanke's statements against nationalisation of banks. China's Shanghai Composite was up 0.11% or 2.41 points at 2,203.06, Hong Kong's Hang Seng rose 2.17% or 278.16 points at 13,076.68, Japan's Nikkei gained 1.59% or 115.35 points at 7,383.9, Singapore's Straits Times added 1.04% or 16.86 points at 1,631.30, South Korea's Seoul Composite jumped 1.39% or 14.8 points at 1,078.68 and Taiwan's Taiwan Weighted advanced 2.29% or 101.30 points at 4,531.48.

US stocks surged on Tuesday, 24 February 2009, rebounding from 12-year lows, after Federal Reserve Chairman Ben Bernanke delivered a dose of relief when he signalled that nationalisation of big banks was not on the cards.

The Dow Jones Industrial Average rose 236.16 points, or 3.32 per cent, to 7,350.94. The Standard & Poor's 500 Index gained 29.81 points, or 4.01 per cent, to 773.14. The Nasdaq Composite Index added 54.11 points, or 3.90 per cent, to 1,441.83.

The Fed chairman's remarks eased frayed nerves that the Treasury's capital-injection plan would hurt banks' shareholders and lead to nationalisation.

According to provisional data on NSE, FIIs were net sellers worth Rs 431.18 crore while mutual funds bought shares worth Rs 358.71 crore on Tuesday, 24 February 2009.