Morning Murmur - June 1 2007 - A Large Carry Over

The Nifty wrapped up the May settlement around the 4300 mark that we had expected, for change not deviating from the script. I don’t usually read too much into the expiry day close, as this is a culmination of a series of events and positions that
were built and stances taken during the settlement gone bye. But markets may do well, for reasons other than the higher closing. For instance, the buoyancy of the Asian markets and the sudden reduction in the Open interest on account of expiry
of may derivatives. But the intention of the punters on Thursday was only to ensure a close in the vicinity of 4300 mark and nothing more.

The discount for the June series, increased to 17 points, which would give an insight into the punters mind. A discount of 8 points is on account of dividends, but the balance 9 points is purely a statement that they have still not thought, how they
would ant the June series to shape up. We have the highest ever-opening balance of Rs 46,862 cr as Open Interest, though not a worry at this time, but may grow into an oak of a problem later during the series. Extend your luck a bit more this month and watch your steps after the 8th of this month or Rs 70,000 cr, which ever comes earlier.

The Indian juggernaut continued to roll on the back of a boom in manufacturing and services sector, notching up a growth of 9.4% in the fiscal year ended March 31. According to the Central Statistical Organization The blistering pace was up slightly from the previous year's 9%. In the final quarter, India's gross domestic product grew at an annualised rate of 9.1%. The U.S. economy, on the other hand, grew at its weakest rate in more than four years during the opening three months of this calendar year , at 0.6%, as businesses sold off inventories and Americans imported more foreign goods.

The commerce department revised down its estimate for first-quarter expansion in gross domestic product, or GDP, to 0.6 percent from 1.3 percent that it estimated a month ago. It was the slowest rate of quarterly growth since the fourth quarter of 2002 when the economy edged ahead at a 0.2 percent rate and was below Wall Street economists' forecasts for a 0.8 percent quarterly growth rate Although the first-quarter growth rate was cut in half, some key components of GDP showed
continuing resilience that may foster a healthier pace of expansion later in the year.

Personal consumption spending that fuels two-thirds of national economic activity rose at an upwardly revised rate of 4.4 percent instead of 3.8 percent estimated a month ago.