Domestic bourses may track firm Asian markets

The market is likely to edge higher with data showing stepping up of buying by FIIs and on firm Asian markets. Asia-Pacific share markets rose on Monday, continuing a recovery from a recent slide after US jobs data reassured investors about the health of the world's biggest economy. Key benchmark indices in Hong Kong, Singapore, South Korea, Taiwan, Australia and Japan were up by between 0.55% to 1%.

The US economy added 97,000 jobs in February, slightly below expectations, data showed on Friday, but jobs growth for previous months was revised up and the unemployment rate fell. US blue chip stocks inched up on Friday, helped by the jobs data, but the growing financial woes of firms operating at the riskier end of the mortgage market capped broader gains. Dow Jones Industrial Average gained 15.62 points or 0.13% to settle at 12,276.32. The Nasdaq Composite Index ended nearly unchanged at 2,387.55.

FIIs have resumed buying since the past three days, after their heavy sales since late-February 2007. FIIs were net buyers to the tune of Rs 115.80 crore on Thursday 8 March 2007, the day when Sensex had surged 470 points. As per provisional data, they were net buyers to the tune of Rs 412 crore on Friday 9 March, the day when Sensex had lost 164 points.

FIIs were net sellers to the tune of Rs 241 crore in index-based futures on Friday. They were net buyers to the tune of Rs 114 crore in individual stock futures on that day.

Mutual funds are sitting on cash, thanks to collections from some of the recent new fund offers and they may step up purchases on declines. However, the latest data shows that mutual funds are in selling mode. They were net sellers to the tune of Rs 40 crore on Thursday 8 March, the day when Sensex had surged 470 points. They had pressed sales worth a net Rs 379.56 crore on Wednesday (7 March 2007), the day when the Sensex had lost 177 points in volatile trade.