Market may nudge higher in volatile trade - IBULLS Dec 26 09:30

The market is likely to head higher following gains in US markets on Monday, 24 December 2007. Asian markets were trading mixed today, 26 December 2007.

The market may be boosted further by reports that the Government has allowed all trusts to invest in securities, including shares and bonds of listed companies. For this purpose, an amendment in the Indian Trusts Act, 1982 will be moved in Parliament in the next session to enable the government notify a class of securities as eligible for investment by trusts. This will be the first amendment to the Act since 1947.

At present, there are thousands of trusts in the country, which include religious and charitable trusts as well as statutory trusts formed by the government and quasi-government bodies managing a large amount of money. The move is expected to release several crores into the stock markets and create a set of long-term investors.

Volatility may increase ahead of expiry of December 2007 derivatives contracts on Thursday, 27 December 2007.

As per reports, Nifty rollover from December 2007 series to January 2008 series stood at 61% while total marketwide rollover stood at 48%, as on Monday, 24 December 2007.

Asian markets were trading mixed today, 26 December 2007. Japan's Nikkei (up 0.20% at 15,583.67) and Singapore's Straits Times (up 0.54% at 3,452.99) edged higher. However, Taiwan's Taiwan Weighted (down 0.82% at 8,099.99), Shanghai Composite (down 0.62% to 5,168.73) and South Korea's Seoul Composite (down 0.49% at 1,910.12) slipped.

US Markets advanced in the Christmas Eve short trading day on Monday, 24 December 2007 boosted by Merrill Lynch stake sale news. The Dow Jones industrial Average rose of 98.87 points at 13, 549.33. The Nasdaq Composite Index, finished higher by 21.51 points at 2,713.5. S&P 500 finished higher by 11.99 points at 1,496.45.

Merrill Lynch said on 24 December 2007 it would sell a stake worth just under 10% for $6.2 billion to two investors - Temasek Holdings and Davis Selected Advisors.

Back home, the 30-share BSE Sensex galloped 691.55 points or 3.61% to 19,854.12 on on Monday, 24 December 2007, registering its fifth biggest gain ever. The broader CNX S&P Nifty rose 218.60 points or 3.79% to 5985.10 for the day.

The market remained closed on Tuesday, 25 December 2007 on account of Christmas.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 175.78 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 332.65 crore on Monday, 24 December 2007.

FIIs were net buyers to the tune of Rs 1,986 crore in the futures & options (F&O) segment on Monday, 24 December 2007. They were net buyers of Rs 1,761 crore of index futures, and Rs 275 crore in stock futures. They were net sellers of Rs 50 crore of index options.

Oil prices edged higher today, 26 December 2007, on new supply concerns amid expectations that data from the US will show a new decline in its oil inventories. Light, sweet crude for February delivery added 26 cents to $94.39 a barrel in Asian electronic trading on the New York Mercantile Exchange, Singapore.

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