Sensex may retest 20,000 mark

 The Sensex may retest 20,000 mark today, on the back of strong global cues. It hit an all time high of 20,238.16 on 30 October 2007 but was not able to sustain at higher levels and is yet to close above the physcological 20,000 level. The Sensex's all time closing high is 19,977.67 on 29 October 2007.

 

The 30-share BSE Sensex surged 208.57 points or 1.07% to 19,738.07, on Wednesday 5 December 2007. On the same day, the broader based S&P CNX Nifty gained 81.65 points or 1.39% to 5940, a record closing high. It had struck all-time high of 6011.95 on 1 November 2007.

 

The European Central Bank's and Bank of England meet today, 6 December 2007 to consider interest rate. While the US Federal Reserve will meet on 11 December 2007. It is likely to reduce Fed funds rate by 25 basis points to 4.25% as the country's economy is slowing down and money markets are strained. It has already cut the Fed funds rate two times in the last three months.

 

Asian markets climbed today, 6 December 2007. Hang Seng (up 1.66% at 29,833.93), Japan's Nikkei (up 1.50% at 15,842.92), Taiwan's Taiwan Weighted (up 0.92% at 8,757.13), Singapore's Straits Times (up 1.05% at 3,597.60) and South Korea's Seoul Composite (up 1.09% at 1,959.23) all edged higher.

 

US markets surged on Wednesday, 5 December 2007, as large-cap tech stocks led the gains on analyst reports that demand for computers and software will increase. The Dow Jones industrial average jumped 196.23 points, or 1.48%, to 13,444.96. The S&P 500 index gained 22.22 points, or 1.52%, to 1,485.01, while the Nasdaq Composite index advanced 46.53 points, or 1.78%, to 2,666.36.

 

As per provisional data, foreign institutional investors (FIIs) purchased shares worth a net Rs 480.18 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 159.71 crore on Wednesday, 5 December 2007, in cash market.

 

FIIs were net buyers of index futures to the tune of Rs 202.73 crore while they were net buyers of index options worth Rs 65.82 crore. They were sellers of stock futures to the tune of Rs 1051.89 crore and sold stock options worth Rs 16.43 crore.

 

Oil prices fell for a third straight day in New York, hitting a six-week low, boosted by an unexpected surge in U.S. stockpiles. Crude oil for January delivery dropped as much as 96 cents, or 1.1%, to $86.53 a barrel in after-hours electronic trading on the New York Mercantile Exchange.