The market may gain further ground, tracking firm global markets, and on good rollover of the contracts for April to the May 2007 series. FII inflow remains robust. April derivative contracts expire today. At end Tuesday (24 April), the rollover in the Nifty was about 40% and in stock futures it was about 43%.
The market received a boost early this week, when in its monetary policy announced Tuesday, the Reserve Bank of India (RBI) kept all policy rates unchanged. The RBI forecast that annual wholesale price inflation, which was running just above 6% in early April 2007, will be close to 5% at end-March 2008. RBI's forecast of GDP growth at 8.5% in the fiscal year ending March 2008, is lower than the 9.2% expected for 2006/07.
Corporate results announced so far, were strong. Grasim reported robust Q4 results after trading hours on Wednesday (25 April). The key Q4 result today is of index heavyweight Reliance Industries (RIL). The other major result is that of pharma major Cipla.
The outcome of the ongoing seven-phased Uttar Pradesh assembly elections, is a key political event to watch out for. The assembly poll gets over in early-May 2007. The UP vote is seen as a barometer of national political trends.
FIIs resumed buying on Tuesday (24 April) after turning sellers on Monday (23 April). They were net buyers to the tune of Rs 501.50 crore on Tuesday. FIIs have pumped money heavily in Indian stocks this month. Their inflow picked up after IT major Infosys on 13 April 2007, issued a strong guidance for FY 2008, puttting to rest concerns of a US economic slowdown on the IT sector. FII inflow for April 2007 (till 24 April) reached Rs 5552.70 crore. FIIs had pulled out a net Rs 1082 crore in March 2007.
Asia stocks rose on Thursday after strong profits from US firms eased fears on the outlook for corporate earnings, but the dollar sat near a record low to the euro on nagging worries of a slowdown in the US economy. South Korean stocks hit the latest in a string of record highs. It was up 0.8%. Key benchmark indices in Hong Kong, Japan, China, Singapore and Taiwan were up between 0.4 - 1.4%.
Figures for US durable goods orders came out stronger than forecast on Wednesday, but failed to fully dispel doubts about the strength of US growth that had been raised by weaker-than-expected housing data a day earlier.
The Dow Jones industrial average surged to a record high above 13,000 on Wednesday, driven by stronger-than-expected earnings, while the dollar slumped to a record low against a basket of major currencies after a tepid US housing report. The Dow Jones industrial average climbed 135.95 points, or 1.05%, to end at a record 13,089.89. Earlier in the day, it hit a lifetime intraday high of 13,107.45. The Standard & Poor's 500 Index shot up 15.01 points, or 1.01%, to finish at 1,495.42. The Nasdaq Composite Index jumped 23.35 points, or 0.92%, to close at 2,547.89.
London Brent crude, currently seen as more representative of global oil prices than US crude, inched 3 cents higher to $68.60, after spiking a day earlier when weekly data showed the 11th successive draw in US gasoline stocks.