The Indian market may trade volatile on Monday due to political uncertainty. Investors may also resort to profit taking following the recent surge in share prices. The U.S. markets closed higher on Friday, while Asian markets are currently trading mixed after a firm start.
The month-long Indian parliamentary elections that began on 16 April 2009 will conclude on 13 May 2009. The counting of votes will take place on 16 May 2009. Poll estimates point to a fractured mandate.
The Indian market ignored favorable leads from the other Asian markets and tumbled nearly 2% on Friday due to profit taking ahead of the weekend. Massive unloading of long positions ahead of general election results next week dragged down stocks across the board. The BSE Sensex moved in a range of 12,180-11,765 before finishing at 11,876.43, down 240.51 points or 1.98% over the previous close. Meanwhile, the S&P CNX Nifty fell 63.20 points or 1.72% to settle at 3,620.70.
Foreign Institutional Investors, or FIIs, pulled out shares worth Rs 100.89 crore from the Indian capital market on Friday, ending the week-long investment trend, amid the benchmark Sensex closing in the negative terrain. Domestic institutional investors, or DIIs, also booked profit and were the net seller of shares worth Rs 89.39 crore.
The U.S. markets closed higher on Friday, buoyed by better than expected jobs data and a positive reaction to the results of the stress tests on the country's nineteen largest financial firms. The Dow closed up 164.80 points or 2% at 8,574.65, the Nasdaq closed up 22.76 points or 1.3% at 1,739.00 and the S&P 500 closed up 21.84 points or 2.4% at 929.23.
Crude oil rose to a fresh 6-month high on Friday, closing in on $60 a barrel as the U.S. government's better-than-expected jobs report added to hopes of increased energy demand. Light sweet crude for June delivery closed at $58.63 on the New York Mercantile Exchange, up $1.92 on the session.
Meanwhile, the Indian ADRs closed higher on Friday. ICICI Bank rose 4.96%, HDFC Bank gained 3.43%, Wipro advanced 1.86% and Infosys added 0.55%. Also, MTNL surged 5.05% and Tata Motors gained 3.57%.
The rupee closed at 49.28/29 against the U.S. dollar on Friday, down slightly from Thursday's close of 49.26/49.27, due to weak local equity markets and despite heavy capital inflows.
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