Market likely to see volatile session; inflation eyed

Key benchmark indices are likely to see a volatile session today, 4 September 2008 ahead of the inflation data, which will be announced after market hours today. Global cues were mixed.

The wholesale price index for the 12 months to 23 August 2008 will be relased today. Inflation based on the wholesale price index rose 12.40% in 12 months to 16 August 2008, below its previous corresponding week's annual rise of 12.63% due to lower prices of some minerals and fuels, government data released on, 28 August 2008, showed.

Marketmen will closely watch the crucial Nuclear Suppliers Group (NSG) meet in Vienna scheduled today, 4 September 2008 to consider whether India should be allowed to resume civil nuclear trade with the international community. The 45-nation grouping will consider a draft which is being presented after amendments following demands by at least 15 countries during the 21 – 22 August 2008 meeting.

Oil prices hovered around $109 a barrel today, 4 September 2008 as traders weighed concerns over slowing demand from major consumer countries against further hurricane threats to the US oil sector.

Most Asian markets were trading lower today, 4 September 2008. China's Shanghai Composite fell 0.34% or 7.80 points at 2,268.87, Japan's Nikkei was down 0.36% or 45.37 points at 12,644.22, Hong Kong's Hang Seng declined 0.15% or 31.44 points at 20,553.62, Taiwan's Taiwan Weighted plunged 1.22% or 80.50 points at 6,504.43, Singapore's Straits Times slipped 1.50% or 40.52 points at 2,666.01. However, South Korea's Seoul Composite was up 0.18% or 2.63 points at 1,429.52.

Us markers ended mixed yesterday, 3 September 2008 as economic jitters dampened street enthusiasm for stock buying, fizzling out the post-Gustav enthusiasm. The Dow Jones industrial average gained 15.96 points, or 0.14%, to 11,532.88. The S&P 500 index declined 2.60 points, or 0.20%, to 1,274.98, and the Nasdaq composite index lost 15.51 points, or 0.66%, to 2,333.73.

Back home, a strong correction in crude oil price helped the key benchmark indices register phenomenal gains on Tuesday, 2 September 2008. The BSE 30-share Sensex jumped 551.35 points or 3.80% to 15,049.86 and the S&P CNX Nifty was up 155.35 points or 3.57% to 4504 on that day.

Indian stock markets were shut yesterday, 3 September 2008 on account of Ganesh Chaturthi.

Foreign institutional investors (FIIs) were net equity buyers worth Rs 1132.35 crore while mutual funds purchased shares worth Rs 209.79 crore on Tuesday, 2 September 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 2426.89 crore in the futures & options segment Tuesday, 2 September 2008. They were net buyers of index futures to the tune of Rs 2078.33 crore and purchased index options worth Rs 746.67 crore. They were net sellers of stock futures to the tune of Rs 524.56 crore and bought stock options worth Rs 126.45 crore.