Local equities are geared for firm start today following positive global cues. However the market may stay cautious ahead of inflation data to be released for the week ended 3 May 2008 by noon today. The spiralling inflation has been the biggest cause of concern for Indian equities market off late.
However in a development which can have major implications on the market, the government is reportedly set to review the restrictions imposed on participatory notes (P-notes), as till date nearly $2.8 billion of foreign institutional investor (FII) money is flowing out of Indian Markets in 2008. In October 2007, FIIs were barred from issuing P-notes in the derivatives market. The finance ministry has asked the Securities & Exchange Board of India (Sebi) to examine whether those restrictions have hindered investments by FIIs.
Asian markets were trading higher today, 16 May 2008, led by commodity producers and shipping companies, on speculation that China is looking for acquiring stake in BHP Billiton and after the price of transporting freight touched record high.
Shanghai Composite (up 0.17% at 3,643.63), Hang Seng (up 0.90% at 25,742.97), Nikkei 225 Average (up 0.15% at 14,273.71), Straits Times (up 0.83% at 3,233.98), Seoul Composite (up 0.30% at 1,891.29) and Taiwan Weighted (up 0.71% at 9,222.43) edged higher.
US markets rallied yesterday, 15 May 2008, after a better-than-expected economic data and pullback in oil prices eased some of the market`s concerns about inflation.
The Dow Jones industrial average rose 94.28 points, or 0.73%, to 12,992.66. The Nasdaq Composite index rose 37.03 points, or 1.48%, to 2,533.73 while the S&P 500 index gained 15 points at 1,424.
Back home, the 30-share BSE Sensex surged 375.19 points or 2.21% at 17,353.54 and the broader based S&P CNX Nifty gained 103.50 points or 2.07% at 5,115.25, yesterday 16 May 2008.
The barometer index – BSE Sensex has risen 2544.05 points or 17.17% from recent low of 14,809.49 touched on 17 March 2008. However the Sensex is still 3853.23 points or 18.16% away from its all-time high of 21206.77 hit on 10 January 2008.
As per provisional data, foreign funds purchased shares worth a net Rs 706.88 crore yesterday, 15 May 2008. Domestic funds bought shares worth a net Rs 363.11 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 524.05 crore in the futures & options segment yesterday, 15 May 2008. They were net buyers of index futures to the tune of Rs 173.50 crore and bought index options worth Rs 186 crore. They were net buyers of stock futures to the tune of Rs 150 crore and bought stock options worth Rs 14.55 crore.
U.S. crude for June delivery rose 67 cents to $124.79 a barrel today, led by the bullish heating oil market as China and Europe scramble for barrels, thinning global supply.