A fresh setback in oil prices and positive cues from the global markets will trigger firm opening of the Indian stocks after the market clocked its biggest rally in four months on Wednesday, 23 July 2008, triggered by hopes the government would revive stalled economic reforms.

Oil prices steadied around $124.50 per barrel in Asian trading toady, 24 July 2008, down nearly $23 from its record high hit earlier this month and hitting a seven-week low. The sharp fall in oil prices will ease concerns about inflation and interest rates. High oil and commodity prices have been a key cause for surging inflation and rising interest rates. Inflation is nearly 12% annually, its highest in more than 13 years. The quarterly monetary policy review of the Reserve Bank of India is scheduled on Tuesday, 29 July 2008.

Q1 June 2008 results announced so far have been a mixed bag. The key Q1 result today is that of Reliance Industries (RIL). Pressure on petrochemicals margins are seen offsetting strong refining margins of RIL in Q1 June 2008.

The market soared on Wednesday, 23 July 2008, on hopes the government may push forward some economic reforms which had been stalled over the past four years due to opposition from Left parties, after it won trust vote in parliament on Tuesday, 22 July 2008. Left parities had stalled privatisation of state-run firms, pension reforms, higher foreign limits in insurance and more liberal norms for foreign bank. The government has retained power thanks to support from regional parties including Samajwadi Party (SP), a regional party in Uttar Pradesh.

Some analysts, however, feel that a major big-bang push to reforms is unlikely as the government will focus primarily on bringing down inflation ahead of key state polls and parliamentary elections which are due in May 2009.

As per provisional data released by the stock exchanges, foreign funds on Wednesday, 23 July 2008, bought shares worth a net Rs 1,306.56 crore. Foreign funds sold shares worth a net Rs 390.50 crore on Tuesday, 22 July 2008, data released by the market regulator Securities & Exchange Board of India (Sebi) on Wednesday, 23 July 2008, showed.

US stocks rose on Wednesday, 23 July 2008, as financial shares climbed on hopes lawmakers will approve a rescue plan for mortgage finance companies Fannie Mae > and Freddie Mac and as the price of oil fell. The Dow Jones industrial average rose 29.88 points, or 0.26%, to 11,632.38, while the Standard & Poor's 500 Index gained 5.11 points, or 0.40%, to 1,282.11, a three-week closing high. The Nasdaq Composite Index was up 21.92 points, or 0.95 percent, at 2,325.88.

Asian markets were mostly in green today, 24 July 2008. Key benchmark indices in Hong Kong, Japan, China, South Korea and Taiwan were up by between 0.19% to 1.6%.

Powered byCapital Market - Live News