Market may remain range-bound

The market may remain range-bound today, as traders are likely to refrain from taking up fresh positions ahead of the public holidays, on Tuesday (1 May) and Wednesday (2 May).

The Union Budget 2007-08 is due to be passed by the Parliament on Thursday (3 May), and markets will keep an eye for any rollback measures from Budget Day (28 February 2007). The markets will be watch whether Finance Minister P Chidambaram rolls back the export duty imposed on iron ore exports, which has hit exports to China, and any changes to bring employee stock options plans under the fringe benefit tax.

The key March 2007 quarter results today are FMCG giant Hindustan Lever and cellular services major Reliance Communications (RCL). RCL is seen reporting robust Q4 results on the back of surging new subscription additions.

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, and the vote is seen as a barometer of national political trends. Some opinion polls show the opposition Bharatiya Janata Party (BJP) could emerge second in the race, further adding to the woes of the ruling Congress, which is battling rising prices.

FIIs have pumped money heavily into Indian stocks, this month. Their buying picked up after IT major Infosys on 13 April 2007, issued a strong guidance for FY 2008, putting to rest concerns of a US economic slowdown on the IT sector. FII inflow for April 2007 (till 26 April) reached Rs 6874 crore. FIIs had pulled out a net Rs 1082 crore in March 2007.

But a bout of selling was witnessed from FIIs on Friday (27 April 2007). As per a provisional data, FIIs were net sellers to the tune of Rs 378 crore on Friday, the day when the Sensex had plunged 320 points.

Chinese stocks on Monday shrugged off a central bank announcement at the weekend that it will raise bank reserve ratios to help restrain loan growth. The Shanghai Composite Index was up 0.9%.

But other Asian markets were subdued, as exporters were hit by a weak US GDP growth data. A report on Friday showed the US economy grew by just 1.3% in the first quarter.

Strong earnings helped lift the Dow to another record close above 13,000 on Friday (27 April). It rose 15.44 points, or 0.12%, to end the day at a record 13,120.94, capping off its fourth straight week of gains. The Standard & Poor's 500 Index was down just 0.18 of a point, or 0.01%, to finish at 1,494.07. The Nasdaq Composite Index was up 2.75 points, or 0.11%, to close at 2,557.21.

Brent crude oil prices hovered above $68 a barrel on Monday, following sharp gains at the end of last week, with investors still on edge over a foiled plot to attack oil facilities in top-exporter, Saudi Arabia. Brent rallied over 1% on Friday after Saudi Arabia said it fended off an Al-Qaeda-linked plot to attack oil facilities, military-bases and public figures, arresting Islamist militants, including some trainee pilots preparing for suicide operations.