Indian market likely to open higher on strong global cues
June, 16th 2008
Global cues are pointing towards a higher opening for the Indian market on Monday. Wall Street extended its gains Friday on the back of muted consumer prices data and a pullback in oil prices. The Asian markets are higher in early trade Monday as inflation fears eased. Crude oil has eased to $134 a barrel in Asian trade Monday after losing as much as $1.88 to settle at $134.86 a barrel on Friday in U.S. trading.
On the local front, data on advance tax paid by Indian companies, scheduled for release later in the day, and bargain hunting following recent steep losses are likely to lift market sentiment.
In the U.S., the Dow gained 165.77 points or 1.37% to close at 12,307.35, the broader S&P 500 index added 20.16 points or 1.50% to finish at 1,360.03 and the tech-heavy Nasdaq composite index advanced 50.15 points or 2.09% to end at 2,454.50 on Friday.
The Indian market closed lower on Friday after annual inflation, based on wholesale price index, surged to 8.75% from 8.24% in the previous week. The 30-share BSE Sensex lost 60.58 points or 0.4% to finish at 15,189.62 and the broader S&P CNX Nifty closed down 22.25 points or 0.5% at 4,517.10. Nifty June futures were at 4,482.10, a discount of 35 points compared to spot closing.
The turnover in the Bombay Stock Exchange was Rs 5,847 crore and that in the National Stock Exchange totaled Rs. 11,913 crore on Friday. According to provisional data revealed by the NSE, Foreign Institutional Investors were net sellers for Rs 116 crore on the NSE and the BSE in the capital market segment, but turned net buyers for Rs 594 crore in the futures and options segment.
The Indian rupee weakened on Friday, weighed down by a strong dollar and outflow from the equity market after inflation hit its highest in seven years. The partially convertible rupee ended at 42.94-42.95 a dollar, down from Thursday's close of 42.835-42.845 a dollar.
Indian ADRs ended on a positive note on Friday. ICICI Bank gained 3.9%, MTNL rose 3.2%, Satyam and Wipro advanced 2.0% each, Infosys climbed 1.9% and Dr Reddy's was added 1.2%, while Tata Communications and HDFC Bank moved up by about a percentage each.