Market may extend gains on firm Asian bourses

The market is likely to extend Friday’s rally on the back of firm global markets. A fall in inflation and Infosys’ Q4 results had triggered a 270 points surge in Sensex on Friday (13 April). The major Q4 result today is that of software major TCS.

The data released on Friday showed that the wholesale price index rose 5.74% in the 12 months to 31 March 2007, lower than the previous week's increase of 6.39%.

Infosys’ FY 2008 EPS guidance announced on Friday was muted but it was in line with market expectations. The software major gave a strong guidance in dollar terms that sent shares of IT pivotals surging on Friday.

Though FIIs remained net buyers, their volumes as reflected in daily gross purchases and gross sales declined on Thursday (12 April). Earlier, their volumes had remained low on 9 April as well. FIIs were net buyers to the tune of Rs 55.20 crore on Thursday. The net inflow of between Rs 55.20 crore to Rs 101.90 crore in two trading sessions on 11 April and 12 April was much lower compared to robust inflow of between Rs 402.60 crore to Rs 569.40 crore in three trading sessions from 5 April to 10 April.

As per provisional data, FIIs were net buyers to the tune of Rs 238.50 crore on Friday 13 April, the day when Sensex had surged 270 points. They were net buyers to the tune of Rs 355 crore in index-based futures on that day. They were net buyers to the tune of Rs 216.53 crore in individual stock futures on that day.

Asian markets were firm on Monday (16 April). Key benchmark indices in Hong Kong, China, Japan, South Korea, and Singapore were up by between 0.46% to 1.6%.

US stocks rose on Friday, cheered by a higher profit forecast from drug maker Merck & Co. The Dow Jones industrial average closed up 59.17 points, or 0.47 percent, at 12,612.13. The Standard & Poor's 500 Index finished 5.05 points, or 0.35 percent, higher at 1,452.85. The Nasdaq Composite Index ended up 11.62 points, or 0.47 percent, at 2,491.94.

Global liquidity still remains strong. It has helped global markets recover quickly from recent steep corrections. However, there are concerns that too much money will lead to inflated prices of assets and volatility.

US crude oil futures ended lower on Friday on profit-taking. May crude settled down 22 cents, or 0.3 percent, at $63.63 a barrel.