The key benchmark indices opened on an upbeat note today tracking firm global markets. However, they pared gains soon. The market breadth was strong. Caution may prevail ahead of the release of inflation figure for the year through 24 May 2008 at 12:00 IST today. Inflation had surged to a 4-year high at 8.10% in the year through 17 May 2008. Also a revision of provisional inflation data for earlier period will be watch closely.

Crude oil climbed close to $6 on Thursday, 5 June 2008, to more than $127 per barrel as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3% in Asian trading today.

At 10:28 IST, the 30-share BSE Sensex was up 16.03 points or 0.10% at 15,785.76. It opened 144.69 points higher at 15,914.41 and struck a high of 15,970.70 in early trade. At the days high, Sensex gained 200.98 points. Sensex lost 35.32 points at days low of 15,734.40 touched in early trade.

The broader based S&P; CNX Nifty was 7.30 points or 0.05% at 4,679.25

The market breadth was strong on BSE with 1063 shares advancing as compared to 519 that declined. 39 remained unchanged.

The total turnover on BSE amounted to Rs 839 crore

Among the 30-member Sensex pack, 16 advanced while the rest slipped.

Indias largest dedicated housing finance company in terms of total income, Housing Development Finance Corporation advanced 2.20% to Rs 2445 on 24,670 shares. It was the top gainer from Sensex pack.

Satyam Computer Services (up 2.12% to Rs 524.20), Reliance Infrastructures (up 2% to Rs 1153.50), and Tata Motors (up 1.40% to Rs 540.60), edged higher from the Sensex pack.

Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) slipped 1.05% to Rs 2224.10 on 1.89 lakh shares. The stock had surged to an intra-day high of Rs 2299 in opening trade.

Banking shares were mixed ahead of inflation data. ICICI Bank (down 0.54% to Rs 777) and State Bank of India (down 1.13% to Rs 1339) declined.

However Indias second largest private sector bank in terms of net profit, HDFC Bank rose 1.05% to Rs 1256.

Indias leading oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation fell 1.59% to Rs 938 on 1.38 lakh shares. It was the top loser from Sensex pack.

Wipro (down 1.40% to Rs 521), Grasim (down 0.95% to Rs 2225), and DLF (down 1.01% to Rs 533), were the other losers from Sensex pack.

Among the side counters, SpiceJet (up 15.29% to Rs 36.20), Marksans Pharma (up 10% to Rs 22.10), and Indiabulls Real Estate (up 8.52% to Rs 440), surged.

Analysts opine that higher inflationary expectations following the recent fuel price hike have given rise to fears of a cash reserve ratio (CRR) or interest rate hike by the Reserve Bank of India, which is a negative for markets. Reserve Bank of India governor YV Reddy yesterday, 5 June 2008 hinted at a possible increase in CRR in an attempt to curb inflationary expectations

Most Asian markets were trading higher today, 6 June 2008. Japan's Nikkei (up 1.55% at 14,563.14), Hang Seng (up 1.06% at 24,511.24), Taiwan's Taiwan Weighted (up 0.63% at 8,793.60), Singapore's Straits Times (up 0.67% at 3,165.10), advanced. However, China's Shanghai Composite declined 0.17% at 3,345.90.

US markets rallied yesterday, 5 June 2008 on stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health. The Dow Jones industrial average gained 213.97 points, or 1.73%, to 12,604.45. The S&P; 500 index advanced 26.85 points, or 1.95%, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87%, to 2,549.94

The European Central Bank said yesteday, 5 June 2008, it would keep key lending rates unchanged at 4%. The bank, however, anticipates inflation to be more persistent than previously anticipated. Also the Bank of England kept its benchmark interest rate unchanged at 5% yesterday, 5 June 2008.

Back home, frenzied buying coupled with short covering after three straight days of fall triggered a solid rally yesterday, 5 June 2008. The 30-share BSE Sensex jumped 254.93 points or 1.64% at 15,769.72 and the broader based S&P; CNX Nifty was up 91.35 points or 1.99% to 4,676.95, on that day.

As per provisional data, foreign funds sold shares worth a net Rs 1418.34 crore yesterday, 5 June 2008. Domestic funds bought shares worth a net Rs 570.03 crore on that day.

Foreign institutional investors (FIIs) were net buyers of Rs 1054.43 crore in the futures & options segment yesterday, 5 June 2008. They were net buyers of index futures to the tune of Rs 1035.25 crore and bought index options worth Rs 405.81 crore. They were net sellers of stock futures to the tune of Rs 402.85 crore and bought stock options worth Rs 16.22 crore.

Meanwhile, market regulator Securities and Exchange Board of India (Sebi) yesterday, 5 June 2008, ruled out relaxing curbs imposed last year on participatory notes (PNs), a derivative tool that enables unregistered foreign investors to invest in Indian stock markets. In October 2007, Sebi had imposed restrictions on Foreign Institutional Investors (FIIs) to issue PNs and asked FIIs and their sub-accounts not to issue fresh PNs against underlying derivatives and wind up their existing position in 18 months.

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