Indian equities are geared for higher opening today, 13 May 2008 following firm cues from global markets. Retreating crude oil prices from record high may also lift the sentiment.
With results already declared from majority of the frontline corporates, the result season has almost come to an end. The near term trend is likely to be dictated by global cues.
Aggregate results of 1680 companies showed 18.40% rise in net profit on 22.80% rise in net sales in Q4 March 2008 over Q4 March 2007, so far. There was 29.80% rise in net profit on 23.60% rise in net sales in the year ended March 2008 over year ended March 2007.
Asian markets were trading higher barring China’s Shanghai Composite which fell 49.42 points or 1.36% at 3,577.56 led on uncertainty following a deadly earthquake in southwest China on Monday, 12 May 2008 and the central bank's announcement of the fourth bank reserve ratio hike this year.
Hang Seng (up 0.03% at 25,071.43), Nikkei 225 Average (up 0.64% at 13,831.85), Straits Times (up 0.28% at 3,189.10), Seoul Composite (up 0.05% at 1,824.60), Taiwan Weighted (up 1.43% at 8,955.96) advanced.
US markets rallied yesterday, 12 May 2008 led by financials and technology stocks after the world's largest bond insurer MBIA said it has enough cash to cover claims. Also the drop in oil prices helped ease investors` worries about inflation`s impact on consumer spending.
The Dow Jones industrial average rose 130.43 points, or 1.02%, to 12,876.31. The Nasdaq Composite index rose 42.97 points, or 1.76%, to 2,488.49.
Back home, frenzied buying in late trade helped market snap its five-day slide yesterday, 12 May 2008. The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90 and the broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65, on that day.
India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.
Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.
As per provisional data, foreign funds sold shares worth a net Rs 210.57 crore yesterday, 12 May 2008. Domestic funds bought shares worth a net Rs 241.01 crore on that day.
New York's main oil futures contract, light sweet crude for June delivery, was 73 cents lower at $123.50 as profit taking helped cool a red-hot market.