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CAPITAL MARKET

MARKET PREVIEW MAR 8th, 2010

• Indian equities are likely to open positive on Monda8, Mar. 5, 2010. SGX Nifty is trading at 5,168, 24 points higher than Friday’s closing.

• US stocks jumped and the Nasdaq hit an 18-month closing high on Friday as US employers cut fewer jobs than expected last month and consumers showed signs of shedding their penny-pinching ways. The Dow Jones industrial average gained 122.06 points, or 1.17%, to end at 10,566.20. The Standard & Poor’s 500 Index added 15.73 points, or 1.40%, to 1,138.70. The Nasdaq Composite Index rose 34.04 points, or 1.48%, to 2,326.35

• Closer home, the government’s commitment towards reducing fiscal deficit, a thrust on infrastructure development, and plan to speed up disinvestment in the Union Budget for 2010-2011 has boosted market sentiment. Higher disposable income at the hands of individuals after the finance minister raised the tax slabs in the budget also opens up the possibility of some funds entering the market through the mutual funds route which augurs well for the secondary market.

• The government will announce the industrial output data for the month of January 2010 on Friday, 12 March 2010. The data is expected to be robust after the infrastructure sector output which accounts for 26% of the industrial output showed a growth of 9.4% in January 2010 from a year earlier. Industrial output grew 16.8% in December 2009.

• The fourth and the last installment of advance tax by India Inc due on 15 March 2010 will give a broad indication of fourth quarter earnings

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