Market may recover on positive cues from global stocks

The market may recover after Thursday's (16 April 2009)'s 3% slide on firm global equities. The preliminary prediction of the South West monsoon by the India Meteorological Department (IMD) will influence shares in FMGC, auto and cement sectors which derive a substantial revenue from the rural markets. IMD will today give a preliminary forecast of the South West monsoon this year.

Political uncertainty may cap near term upside on the bourses. The month-long parliamentary elections began on Thursday, 16 April 2009. Poll estimates point a fractured mandate.

As per the provisional data released by the stock exchange, foreign funds bought shares worth a net Rs 479.09 crore on Thursday. FIIs have made heavy buying in the past few weeks after heavy sales in the first two months of calendar 2009. There was a huge outflow of Rs 1124.24 crore by domestic institutional investors (DIIs) on Thursday.

Asian shares were higher Friday,17 April 2009, led by technology stocks
after their US peers gained on hopes for better demand and some stability in the economy there. Wall Street gained Thursday amid hopes for an economic bottom in the US.

But trading in US index futures showed the Dow could fall 29 points at the opening bell on Friday.