Market seen opening firm on positive global cues

Key benchmark indices are seen extending a recent solid surge,as market opens after a long weekend, on the back of positive global cues. Trading in US index futures showed the Dow could rise 46 points at opening bell today, 13 April 2009. However, some profit taking in day's second half session cannot be ruled out.

Fall in headline inflation and weak industrial production data for February 2009 raised expectations of a further easing of the monetary policy by the Reserve Bank of India (RBI). Resumption of buying by foreign funds also bolstered sentiment.

Signs of an improvement in the Indian economy triggered a solid rally on the domestic bourses in the past few days. The rally was also a part of a sharp surge in global equities triggered by hopes the worst of the global economic recession may be over. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex jumped 2,643.46 points or 32.39%.

Inflation based on the wholesale price index (WPI) rose 0.26% in the year through 28 March 2009, lower than previous week's 0.31% rise, data released by the government today, 9 April 2009, showed. It was the lowest growth in WPI inflation in at least two decades.

Asian markets were trading firm today, 13 April 2009 after Japanese prime minister Taro Aso more than doubled stimulus spending and Chinese lending rose by a record. Key benchmark indices in China, Singapore, South Korea, Taiwan and Japan were up by between 0.23% and 2.57%. Several Asia-Pacific markets including Hong Kong, Thailand, New Zealand and Australia were are shut today, 13 April 2009 for Easter holiday.

US markets jumped on Thursday, 9 April 2009 after Wells Fargo said it expects to report a record quarterly profit, fueling a month-long rally prompted by hopes that deterioration in the financial sector was abating.

The Dow Jones Industrial Average rose 246.27 points, or 3.14%, to 8,083.38, the Standard & Poor's 500 Index gained 31.40 points, or 3.81%, to 856.56 and the Nasdaq Composite Index climbed 61.88 points, or 3.89%, to 1,652.54.

Back home, key benchmark indices registered small gains in a highly volatile trade on Thursday, 9 April 2009. The BSE 30-share Sensex rose 61.52 points or 0.57% to 10,803.86, its highest closing since 15 October 2008. The S&P CNX Nifty was almost unchanged at 3,342.05 compared to Wednesday (8 April 2009)'s close of 3342.95. The stock market was closed on Friday, 10 April 2009, on account of Good Friday.

According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 170.92 crore while mutual funds sold shares worth Rs 308.39 crore on Thursday, 9 April 2009.