Thursday, December 27, 2007

Market expected to be volatile

On Wednesday BSE Sensex gained 338.40 points, or 1.70%, to close at 20,192.52, while the broad-based NSE Nifty closed at 6,070.75, up 85.65 points, or 1.43%.

Brokers` Outlook
Bharat Thakur, assistant manager, Karvy Stock Broking expects a volatile session on Thursday on the back of F&O expiry. He also said that after expiry some consolidation would be seen in the market before this year-end.

He is bullish on engineering and construction sectors and stocks to be watched out are Hindustan Zinc, Axis Bank, Aban Offshore, Reliance Industries and Reliance Petroleum.

U.S. stocks ended flat on Wednesday due to news of weaker-than-expected retail sales. A jump in oil prices also concerned investors. A report that U.S. home prices fell for the 10th consecutive month in October also appeared to weigh on investors.

The Nasdaq Composite Index advanced 0.40%, to 2,724, while Dow average up by 0.02% to 13,551.

Asian markets on Thursday (Dec. 27, 2007) opened mixed with the Nikkei and Shanghai Composite trading marginally down, while Taiex, KOSPI and Strait Times advanced. Metal and energy companies added gains as crude oil and metals prices soared.

Japanese benchmark index Nikkei fell 83.25 points, or 0.53%, to trade at 15,570.29. Hong Kong`s index Hang Seng was trading flat at 28,129.35. China`s Shanghai Composite fell 16.37 points, or 0.31%, to trade at 5,216.98. South Korea`s KOSPI added 2.28 points, or 0.12%, to trade at 1,909.00.

Crude oil prices rose on Wednesday (December 26), followed by the new round of Turkish air strikes in northern Iraq and a growing belief that domestic oil inventories fell last week. Light sweet crude for February delivery rose USD 1.84, to settle at USD 95.97 a barrel Wednesday on the New York Mercantile Exchange (NYMEX). It rose as high as USD 96.54, its one-month high.

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