Market seen lower in volatile trade

Key benchmark indices are likely to open lower mirroring weak Asian indices. The SGX Nifty futures for April 2009 expiry was down 37.50 point in Singapore. However buying support from foreign funds may cap downside. Stock specific activity will be high in companies that will be announcing their March 2009 quarterly results.

Tech Mahindra, Bank Of Baroda, JP Associates, Aban Offshore, Areva T&D, Bosch, Castrol India, Indian Bank, KPIT Cummins, Shree Renuka Sugars and United Spirits, among others will declare their March 2009 quarterly results today, 27 April 2009.

Aggregate results of 270 firms showed 10.20% fall in net profit on 2.2% rise in sales in Q4 March 2009 over Q4 March 2008.

Political uncertainty, with polling for India's 15th Lok Sabha underway, may lead to volatile swings on the bourses. The month-long parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009 with results due on 16 May 2009. Poll estimates point to a fractured mandate.

Expiry of derivatives expiry on Wednesday, 29 April 2009 may prop the volatility further. Rollover of Nifty positions from April 2009 series to May 2009 series stood at 38% while those of stock futures
were 26%, as on Friday, 24 April 2009.

Turnover may take a hit as stock market will remain shut on Thursday, 30 April 2009 as voting takes place in Mumbai for the parliamentary elections on that day. The market is also shut on Friday, 1 May 2009, on account of Maharashtra Day.

Most Asian markets were trading weak today, 27 April 2009. Key benchmark indices in China, Hong Kong, Taiwan, South Korea, and Singapore fell by between 0.76% and 3.32%. However Japan's Nikkei 225 index gained 0.22%

However US stocks rallied on Friday, 24 April 2009, as earnings showed companies have weathered the recession and economic data raised hopes the economic cycle may have hit a bottom. The Dow Jones Industrial Average added 119.23 points, or 1.50%, to 8,076.29, the Standard & Poor's 500 Index rose 14.31 points, or 1.68%, to 866.23 and the Nasdaq Composite index gained 42.08 points, or 2.55%, to 1,694.29.

Back home, firm global cues lifted key benchmark indices on Friday, 24 April 2009 with the Sensex closing at highest level in more than six months. The BSE 30-share Sensex jumped 194.06 points or 1.74% to 11,329.05, its highest closing since 14 October 2008. The S&P CNX Nifty gained 57.05 points or 1.67% to 3,480.75 its highest closing since 15 April 2009.

Bulls were on the rampage with the market surging for the seventh week in a row in the week ended Friday, 24 April 2009 on the back of sustained buying by foreign funds and positive global cues. The 30-share BSE Sensex jumped 305.96 points or 2.78% to 11,329.05, in week ended 24 April 2009. The broader 50-unit Nifty jumped 96.35 points, or 2.84%, to 3480.75 in the week.

According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 576.77 crore while domestic institutional investors funds bought shares worth Rs 15.31 crore on Friday, 24 April 2009. FII inflow in April 2009 totaled Rs 4,860.40 crore, till 23 April 2009