Market may head higher - 01st Feb

The market may head higher due to good rollover in derivatives segment. The January 2008 derivative contracts expired yesterday, 31 January 2008. As per reports, rollover of Nifty futures from January 2008 series to February 2008 series stood at 75% while marketwide rollover was 85%. The rollovers in previous series i.e. from November 2007 to December 2007 for Nifty futures and marketwide rollover were 81% and 85% respectively.

Third quarter December 2007 results so far have been decent. A total of 1815 companies reported 30.60% rise in net profit on 18.80% rise in net sales in Q3 December 2007 over Q3 December 2006.

Asian markets were trading mixed today, 1 February 2008. Hong Kong's Hang Seng (up 1.27% at 23,753.04), Taiwan's Taiwan Weighted (up 1.69% at 7,648.41), Singapore's Straits Times (up 0.46% at 2,995.38), South Korea's Seoul Composite (up 0.50% at 1,632.98) rose. However, Japan's Nikkei declined 0.62% at 13,507.80 and Shanghai Composite lost 3.54% to 4,228.05

US markets rallied on Thursday, 31 January 2008, led by financial shares after the world's largest bond insurer, MBIA announced that it expects to retain its credit ratings. The Dow Jones industrial average surged 207.53 points, or 1.67%, to 12,650.36. The S&P 500 index gained 22.74 points, or 1.68%, to 1,378.55, and the Nasdaq Composite index shot up 40.86 points, or 1.74%, to 2,389.86.

Back home, the 30-share BSE Sensex declined 109.93 points or 0.62% at 17,648.71, on Thursday 31 January 2008 in volatile trade. The broader based S&P CNX Nifty was down 30.15 points or 0.58% at 5,137.45 on Thursday 31 January 2008 in volatile trade.

As per provisional data, foreign institutional investors (FIIs) sold shares worth Rs 3938 crore on Thursday, 31 January 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 2160.05 crore on that day.

FIIs were net buyers of Rs 128 crore in futures & options (F&O) market on Thursday, 31 January 2008. They were net buyers of Rs 399 crore in index options and Rs 743 crore in stock futures but net sellers of Rs 1,014 crore in index futurers.

Meanwhile, as per reports, short selling by the institutional investors may be kicked off a week later than what was earlier scheduled for today, 1 February 2008. Though Securities & Exchange Board of India and stock exchanges are ready for its timely rollout, there seems to be some confusion whether short selling will attract the Securities Transaction Tax (STT) or not. The Central Board of Direct Taxes (CBDT) is yet to clarify on the issue.