Market seen extending recent rally on firm global cues

The market is likely to see an upbeat start on firm global cues. US markets settled higher on Tuesday, 29 March 2011. Asian equities were trading firm today, 30 March 2011, as Japanese companies resumed production after the devastating earthquake earlier this month. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 23.50 points at the opening bell. Shares of PTC India Financial Services will debut on the bourses today, 30 March 2011.



Indian stocks registered strong gains recently as inflation worries along with a fall in crude oil prices and on resumption of buying by foreign funds. The barometer index BSE Sensex jumped 1,281.75 points or 7.18% in six trading days to settle at 19,120.80 on Tuesday, 29 March 2011, from its close of 17,839.05 on 21 March 2011.

As per provisional figures, foreign funds bought shares worth Rs 1291.54 crore and domestic funds sold shares worth Rs 474.17 crore on Tuesday, 29 March 2011.

Volatility may remain high on the bourses in the near term ahead of the expiry of derivative contracts for the near-month March 2011 series on Thursday, 31 March 2011. The near term major trigger for the market is Q4 March 2011 results which will start trickling in from about mid-April 2011

Oil declined as signs of rising US crude supplies stoked speculation demand may falter in the world's biggest consumer of the commodity. US crude futures were down 61 cents a barrel or 0.58% to $104.18 a barrel. Oil rose in New York on Tuesday, 29 March 2011, as troops loyal to Muammar Qaddafi dug in to block rebels advancing on his hometown of Sirte. Prices have climbed 23 percent since anti-government protests began on 15 February 2011 in Libya, cutting output in Africa's third-largest producer by two-thirds. India imports majority of its crude oil requirements and a surge in crude oil prices to 2-1/2-year highs recently had sparked inflation and interest rates worries.

Asian stocks rose on Wednesday as Japanese companies resumed production following the 11 March 2011 earthquake and on speculation economic recovery in the US will boost earnings. The key benchmark indices in Hong Kong, Taiwan, South Korea Singapore, Japan and Indonesia were up by between 0.56% to 1.22%. China's Shanghai Composite slipped 0.30%.

US markets closed higher on Tuesday on gains in telecom and energy companies. The Dow Jones Industrial Average finished with a gain of 81.13 points, or 0.67%, to 12279.01, while the Standard & Poor's 500-stock index gained 9.25 points, or 0.71%, to finish at 1319.44 and the Nasdaq Composite gained 26.21 points, or 0.96%, to 2756.89.

Billionaire investor and international investment icon Warren Buffett who was in his maiden visit to India last week said that he hopes to spend some money in India. His firm Berkshire Hathaway is looking to park funds in large investment destinations and India fits the bill perfectly, he said. India, according to him, is not an emerging market but a very big country with a large number of significant businesses. He said that Berkshire Hathaway would look at possible acquisitions in India as and when there were opportunities.