Market seen opening lower in volatile trade

Key benchmark indices are seen opening lower mirroring negative global cues. The SGX Nifty futures for April 2009 expiry was down 14.50 points in Singapore. However sustained 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.

Sterlite Industries, Aditya Birla Nuvo, Central Bank, IDFC, Firstsource Solutions, GSK Pharma, Hexaware, India Infoline, Shree Cements, Biocon, Gillette India, ING Vysya Bank, Jubilant Organosys, P&G, Syndicate Bank, Tata Elxsi, UTV Software, and Vijaya Bank, among others will declare their March 2009 quarterly results today, 27 April 2009.

Aggregate results of 381 firms showed 2.8% fall in net profit on 4.4% rise in sales in Q4 March 2009 over Q4 March 2008.

Expiry of derivatives expiry on Wednesday, 29 April 2009 may heighten volatility on the bourses. As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 48% while those of stock futures were 37%, as on Monday, 27 April 2009.

Political uncertainty, with polling for India's 15th Lok Sabha underway, may also prop volatility. 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.

Meanwhile, turnover on the bourses may take a hit with traders refraining to take freh positions ahead of a long weekend. The stock market will remain shut on Thursday, 30 April 2009 as voting takes place in Mumbai for the parliamentary elections and also on Friday, 1 May 2009 on account of Maharashtra Day.

Asian indices were slightly lower today, 28 April 2009. Key benchmark indices in China, Hong Kong, Taiwan, South Korea, and Japan fell by between 0.02% and 0.69%. However Singapore's Straits Times index rose 0.03%.

US stocks fell on Monday, 27 April 2009 on concerns that the spreading of the new flu strain could dampen optimism about the economy overshadowed a restructuring of General Motors Corp and gains in biotechnology stocks. The Dow Jones Industrial Average dropped 51.29 points, or 0.64%, to 8,025, the Standard & Poor's 500 Index fell 8.73 points, or 1.01%, to 857.50 and the Nasdaq Composite index dropped 14.88 points, or 0.88%, to 1,679.41.

Back home, key benchmark indices saw divergent trend - with the BSE Sensex advancing and its peer S&P CNX Nifty ending lower on Monday, 27 April 2009 in what was a highly choppy trading session. The BSE 30-share Sensex rose 42.80 or 0.38% to 11,371.85. However the S&P CNX Nifty slipped 10.75 points or 0.31% to 3,470. The Nifty April futures ended down 0.45% at 3,466.15 points, a discount of 3.85 points to the 50-share Nifty spot index.

According to provisional data on NSE, foreign institutional investors (FIIs) were net buyers worth Rs 257.38 crore while domestic institutional investors funds bought shares worth Rs 68.06 crore on Monday, 27 April 2009. FII inflow in April 2009 totaled Rs 5,373.90 crore, till 24 April 2009.