Monday’s Market Preview: Flat-to-positive opening likely

Monday’s Market Preview: Flat-to-positive opening likely ; The Indian market is likely to see a flat-to-positive opening today as the US markets closed with marginal gains on Friday on account of the non-farm payroll data, which was announced that day. Markets in Asia were mostly higher this morning after US Federal Reserve chief Ben Bernanke over the weekend asserted that the central bank might buy additional bonds to spur growth and higher commodity prices. The SGX Nifty was 24 points higher at 6,050 as compared to its previous close of 6,026.

Encouraging economic data from the domestic arena as well as from across the world along with gains in the broader markets helped the local bourses end the week with splendid gains, ending a three-week losing streak. The market ended the week with gains of 4%, erasing all the losses suffered in November. The Sensex surged 830.32 points to 19,966.93 and the Nifty gained 240.85 points to 5992.80 for the week. Overall, for the month of November it recorded a loss of 4% with the Sensex tumbling 834.38 points and the Nifty declining 254.85 points.

The market is likely to continue its uptrend but volatility is likely to act as speed-breakers.

The US markets closed marginally higher on Friday. The day was marred by the report of an unexpected rise in the unemployment rate. Employers added a mere 39,000 jobs, lower than analysts’ estimates. The Labor Department reported that the unemployment rate rose to a seven-month high of 9.8% in November. The decline in dollar led the markets higher in last hours of trade and the materials and energy companies led the rebound.

The Dow was up by 19.68 points (0.17%) to 11,382.09. The S&P 500 was up by 3.18 points (0.26%) to 1,224.71. The Nasdaq added 12.11 points (0.47%) to 2,591.46.

Markets in Asia were mostly higher in early trade on Monday after the Fed chief reiterated that the central bank would purchase additional bonds to boost growth. The gains were also supported by higher commodity prices. However, a rising yen kept Japanese stocks under pressure.

The Shanghai Composite surged 0.99%, the Hang Seng jumped 1.08%, the Jakarta Composite advanced 0.69%, the Straits Times was up 0.88% and the Taiwan Weighted rose 0.89%. On the other hand, the KLSE Composite shed 0.02%, the Nikkei 225 was down 0.30% and the Seoul Composite declined 0.13%.

Under pressure from shareholders—mostly foreign institutions—at least two stock exchanges including the Bombay Stock Exchange, may approach the government and the Securities and Exchange Board of India against a proposal to disallow bourses from getting listed.

An expert committee set up by the market regulator proposed late last month sweeping changes in the way stock exchanges are owned and earn profits. The proposals included not allowing the bourses to get listed, and capping their profits.

However, these proposals have not gone down well with shareholders who are estimated to have invested over Rs10,000 crore in the country's various bourses over the past few years, market sources said. For the latest updates PRESS CTR + D or visit Stock Market news Today

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