Market seen rallying on strong global cues

Key benchmark indices are seen opening strong, playing a catch up with global bourses after a long weekend, on the back of strong global cues. The SGX Nifty futures for May 2009 expiry surged 136.50 points in Singapore. However profit booking after eight consecutive weeks of rally, with the BSE Sensex surging over 32% since March 2009 lows cannot be ruled out.

Also 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.

HDFC, Allahabad Bank, Indian Overseas Bank, Century Textiles, among others will declare their March 2009 quarterly results today, 4 May 2009. Aggregate results of 1075 firms showed 4.1% fall in net profit on 5% rise in sales in Q4 March 2009 over Q4 March 2008.

Asian indices were trading higher today, 4 May 2009. Key benchmark indices in China, Hong Kong, Singapore, Taiwan, South Korea, and Japan rose by between 1.34% and 5.97%.

US stocks gained on Friday, 1 May 2009 as increasing oil prices pushed the energy shares higher and fresh economic data suggested that the key parts of the economy could be stabilizing. The Dow Jones industrial average gained 44 points to 8,212 . The Standard & Poor's 500 Index rose five points, to 876. The Nasdaq Composite Index edged up 2 points, to 1,719.

Back home, positive global cues and short covering in April 2009 derivatives contracts on expiry day boosted the bourses on Wednesday, 29 April 2009, in a volatile trading session. The BSE 30-share Sensex rose 401.50 points or 3.65% to 11,403.25, its highest closing since 14 October 2009 and the S&P CNX Nifty jumped 111.60 points or 3.32% to 3,473.95

As per reports, rollover of Nifty positions from April 2009 series to May 2009 series stood at 74% while those of stock futures were 76%.

The stock market remained shut on Thursday, 30 April 2009 as voting took place in Mumbai for the parliamentary elections and also on Friday, 1 May 2009 on account of Maharashtra Day.

As per the provisional figures on the NSE, foreign institutional investors (FIIs) bought shares
worth Rs 365.23 crore on Wednesday, 29 April 2009 while domestic institutional investors sold shares worth Rs 403.99 crore.