Market seen extending four-day rise on positive global cues

Local markets are seen extending their four-day gaining streak today, 26 August 2009 as well, with positive global cues boosting sentiment. The SGX Nifty futures for August 2009 expiry was up 19.5 points in Singapore. Encouraging statements from the Finance
Minister Mukherjee indicating that reforms would continue in right earnest to get the economy back to its 9% growth path may boost sentiment. He added that the green shoots were visible in industry with basic goods, intermediates and consumer durables doing better in the first quarter. Meanwhile the likely progress of the ongoing gas dispute between the Ambani brothers ahead of the Supreme Court verdict on 1 September 2009 may also influence the markets.

However volatility may rise ahead of the expiry of the August 2009 series on Thursday, 28 August 2009.

Most Asian markets were trading higher today, 26 August 2009. Key benchmark indices in China, South Korea, Japan, Hong Kong, Singapore were up by between 0.26% and 1.52%. However Taiwan's Taiwan Weighted slipped 1.5%

US stocks rose on Tuesday, 25 August 2009 as economic data and the renomination of Federal Reserve chief Ben Bernanke strengthened investor confidence. The three major indices closed at 2009 highs, although they were off the year's intraday highs reached after the stronger-than-expected economic data. The Dow Jones Industrial Average advanced 30.01 points, or 0.32 per cent, to 9,539.29. The Standard & Poor's 500 Index gained 2.43 points, or 0.24 per cent, to 1,028.00. The Nasdaq Composite Index rose 6.25 points, or 0.31 per cent, to 2,024.23.

Planning Commission Deputy Chairperson Montek Singh Ahluwalia said on Monday, 24 August 2009 that India's fiscal deficit this year will not exceed 6.8% despite rising concerns that high government spending. In the budgetary estimates for 2009-10, the fiscal deficit was projected at 6.8%. The first full meeting of the Planning Commission will be held on 1 September 2009 and the main topic of discussion will be the state the economy.

The BSE Sensex has risen 878.83 points or 5.93% in the past four trading days from 14,809.64 on 19 August 2009 to 15688.47 on Tuesday, 25 August 2009.

Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6041.16 points or 62.62% in calendar year 2009 as on 25 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7528.07 points or 92.25% as on 24 August 2009. FII inflow in calendar year 2009 totaled Rs 36,018.20 crore (till 21 August 2009).

As per the provisional figures on NSE, foreign funds sold shares
worth Rs 259.14 crore and domestic funds bought shares worth Rs 436.59 crore on Tuesday, 25 August 2009.