Strong FII inflow may support share prices

FII inflow has been robust over the past few days. As per provisional data, FIIs were net buyers to the tune of Rs 180.65 crore on Monday, 28 May 2007, the day when Sensex had risen 59 points. Domestic institutions were net buyers to the tune of Rs 74.74 crore on Monday, 28 May 2007.

FII inflow aggregated Rs 4015 crore in 6 trading sessions from 17 May 2007 to 24 May 2007. But they had turned net sellers on Friday 25 May 2007. FIIs sold shares worth a net Rs 147 crore on that day.

Volatility may remain high this week in the run-up to expiry of May 2007 derivatives contracts on Thursday, 31 May 2007.

The Q4 corporate earnings were strong which helped trigger a solid surge in domestic bourses since early last month. The Q1 June 2007 corporate earnings season will kickstart from about a month and a half and, over the next few days, traders are likely to build positions based on Q1 results expectations

South Korean stocks extended their record-breaking run on Tuesday, 29 May 2007, while gains for major miners amid firmer metals prices helped nudge Australian shares higher. But other Asia-Pacific markets were mixed, with few cues from overseas as markets in the United States, Britain and Germany were shut on Monday, 28 May 2007, for public holidays.