Weak Asian markets and data showing that FIIs were net sellers in both and futures segment on Thursday (4 January 2007) may pull the market down further today. Sensex had lost 143 points on Thursday on account of profit taking in pivotals. As per provisional data FIIs were net sellers to the tune of Rs 231 crore on that day. They were net sellers to the tune of a substantial Rs 698 crore in index-based futures on that day. They net bought index based options to the tune of Rs 520 crore. They were net sellers to the tune of Rs 22 crore in individual stock futures.
The next major trigger for the market is Q3 December 2006 results. While strong Q3 results are already factored in share prices, market players will be closely watching what the company managements have to say about outlook for Q4 March 2007 and FY 2008 (year ending 31 March 2008). Infosys kickstarts Q3 earnings season on 11 January.
After Q3 results, the market will be eyeing the Union Budget 2007-08. A build up of long positions is likely on expectations of favourable policy announcements in the budget, according to dealers.
Asian markets were in the red on Friday (5 January). Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 0.11% to 1.8%. There are talks that Japanese interest rates could rise this month.
US stocks rose on Thursday, driving the Nasdaq up more than 1 percent, as technology and biotech stocks gained after positive analyst comments and a drop in oil prices below $56 a barrel increased optimism about corporate profits. The Dow Jones industrial average gained 6.17 points, or 0.05 percent, to end at 12,480.69. The Standard & Poor's 500 Index added 1.74 points, or 0.12 percent, to finish at 1,418.34. The Nasdaq Composite Index climbed 30.27 points, or 1.25 percent, to close at 2,453.43.
US crude dropped sharply on Thursday after weekly oil inventory data showed a larger-than-expected rise in US gasoline stockpiles, extending a loss in crude futures from the previous session to cause its biggest two-day percentage loss in more than two years. US crude oil for February delivery fell $2.73, or 4.7 percent, to settle at $55.59 a barrel.