Market seen opening firm on positive global cues

A firm start is on the cards as Asian stocks edged higher on optimism Japanese factories may restart operations soon after the devastating earthquake that struck the World's third largest economy earlier this month, bringing industrial activity to a standstill in that country. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a gain of 15 points at the opening bell. However, uncertainty prevailing on the crisis in the Middle East and North Africa region and high oil prices may play weigh on the sentiment.



As per provisional figures, foreign funds sold shares worth Rs 523.51 crore and domestic funds bought shares worth Rs 296.30 crore on Friday, 18 March 2011.

Asian markets were firm on Monday, 21 March 2011, as Japan made progress in tackling a nuclear crisis, and amid signs a US economic recovery is strengthening. The key benchmark indices in China, Hong Kong, Singapore, South Korea, Indonesia and Taiwan were up by between 0.34% to 1.12%. Japanese markets are closed for a public holiday today, 21 March 2011.

The Chinese central bank on Friday hiked the required reserve ratio for banks by 50 basis points, the third this year and the sixth since November 2010. The move is expected to curb liquidity in a bid to control rising prices.

US stocks rose on Friday, 18 March 2011, as fears of increased violence in Libya ebbed and currency interventions helped ease investor worries over Japan's economy. The Dow Jones Industrial Average finished with a gain of 83.93 points, or 0.71%, to close at 11858.52. The Nasdaq Composite added 7.62, or 0.29%, to 2643.67 and the Standard & Poor's 500-stock index rose 5.49, or 0.43%, to 1279.21.

Soaring global crude oil price is a cause of concern for India which imports 70% of its oil requirements. Surging oil prices have stoked concerns about higher inflation and interest rates. US crude futures were up $1.59 a barrel or 1.57% to $102.66 a barrel led by ongoing tensions in the oil-rich Gulf region and the impact from Japan's nuclear crisis.

The Reserve Bank of India (RBI) raised key interest rates at a mid-quarter policy review on Thursday, 17 March 2011 and the central bank said it will continue with its anti-inflationary stance. The central bank also warned that continuing uncertainty about energy and commodity prices may vitiate the investment climate, posing a threat to the current economic growth trajectory.

India featured among the 'least favoured' investment destinations, according to a foreign fund manager's survey. Fund managers have reduced their allocations towards emerging markets, including India, for the fourth successive month to reach the lowest level in two years, the survey said.

Advance tax payments made by top 100 firms based in the country's financial capital --Mumbai reportedly rose by 25% in the Q4 March 2011 over Q4 March 2010, hinting robust earnings. Companies pay advance tax every quarter based on their projected income for the year.

The Union Cabinet on Tuesday, 15 March 2011, approved a bill to usher in a national goods and services tax (GST), the final step in the country's most ambitious tax reform before introducing it in parliament. The GST will cut business costs and boost government tax revenue, but will likely miss its April 2012 deadline for implementation due to resistance from several states and the Bharatiya Janata Party.