Market seen lower in volatile trade

Key benchmark indices are likely to open lower following mixed to negative global cues. The SGX Nifty futures for March 2009 series declined 19.50 points in Singapore.

However volatility may remain high ahead of the expiry of March 2009 derivatives contracts for March 2009 series on Thursday, 26 March 2009. As per reports, rollover of Nifty positions from March 2009 series to April 2009 was around 50% as on Tuesday, 24 March 2009.

Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday, 24 March 2009 scaled down the GDP (gross domestic product) growth projection for the current fiscal to 6.5% from the 7.1% increase estimated by the government earlier during the year, owing to the ongoing global crisis.

Meanwhile, traders and brokers can now have a higher exposure in the currency futures market after the market regulator Sebi on Tuesday, 24 March 2009 doubled the gross outstanding limit to $10 million for small traders, $50 million for brokers. However, the limits for banks — the biggest participants in the market so far — have been left untouched at $100 million.

Asian shares were mixed retreating from two-month highs today, 25 March 2009 as investors paused to assess whether a U.S. plan to deal with banks' toxic debt would revive the financial system and help pull the economy out of recession.

Key benchmark indices in China, South Korea and Taiwan were up by between 0.15% and 1.58%. However indices in Hong Kong, Japan and Singapore were down by between 0.11% and 0.40%.

Japan reported a record fall in exports in February 2009, with no signs of a demand recovery in its key U.S. and European markets, as well as a sharp decline in imports. The data pointed to more pain for an economy already mired in its worst recession since the 1974 oil shocks, showing both domestic consumption and overseas demand were crumbling under the weight of the global slowdown.

US stocks ended lower on Tuesday, 24 March 2009 giving back some of the previous session's big gains, as investors paused to re-assess the likely success of the government's bank rescue plan.

The Dow Jones industrial average fell 115.65 points, or 1.5%, to 7,659.97. The Standard & Poor`s 500 index fell 16.67 points, or 2.03%, to 806.35, while the Nasdaq Composite index fell 39.25 points, or 2.52%, to 1,516.52.

Back home, key benchmark indices saw divergent trend on Tuesday, 24 March 2009, with the BSE Sensex logging small gains while its peer the S&P CNX Nifty ended marginally lower after a strong start as European stocks gave up early gains and lower US index futures.

The BSE 30-share Sensex rose 47.02 points or 0.5%, to 9,471.04, its highest close since 13 February 2009. The S&P CNX Nifty was down 1.20 points or 0.04% to 2,938.70. It came off a high of 3,017.40.

From a three-year closing low of 8,160.40 on 9 March 2009, the BSE Sensex has risen 1,310.64 points or 16.06%.

According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 501.76 crore while mutual funds sold shares worth Rs 192.99 crore on Tuesday, 24 March 2009.