Oct 10, 2008

Markets could open down following weak global cues & remain volatile ahead of the weekly inflation data today

03 Oct 2008 | 10:39 Markets could open down following weak global cues & remain volatile ahead of the weekly inflation data today

The Indian Markets closed on a strong note on Wednesday with the BSE Sensex closing at 13055.7, down by 1.5% over Tuesday’s close. After opening marginally in the green, the Nifty witnessed selling pressure & made an intra-day low of 3861.25. However, it recovered well from those lows & gained strength through the day, making an intra-day high of 4000.5.
Towards the end, it once again witnessed a minor correction & closed at 3950.75, up by 0.8% over Tuesday’s close. The NSE cash turnover stood at Rs. 10793 crores in comparison to Rs. 14794 crores on Tuesday. The market breadth was positive on BSE with the advance-decline ratio of 1:0.75. Among the sectoral indices, IT, Banks & Consumer Durables were the major gainers, which increased by 4%, 3.2% & 3% respectively. However, Realty & Oil & Gas were the underperformers, which decreased by 2.3% & 1.1% respectively.

U.S. markets slid on Thursday as tight credit markets and bleak economic data forced investors to focus on the rocky road still ahead for the U.S. economy even if Congress passes a $700 billion rescue package this week.
Dow Jones & Nasdaq decreased by 3.2% & 4.5% respectively. The Indian ADRs closed on a mix note with Infosys, Wipro & Satyam decreasing by 5.6%, 4% & 3.5% respectively. HDFC Bank decreased by 1.4%, while ICICI Bank increased by 2.3%. Tata Communications increased by 1.2%, while MTNL closed down by 4%. Among the Latin American markets, the Mexican markets decreased by 4.3%, while Brazilian Market closed down by 7.3%. Among the Metal prices, Aluminium & Copper decreased by 1.2% & 2.8% respectively, Zinc & Nickel decreased by 0.6% & 1.6% respectively. The light crude oil for November increased by 4.6% to settle at $93.97 a barrel. Today, the Asian Markets are trading down with Nikkei & Hang Seng trading down by 1.4% & 2% respectively, while Singapore Strait is trading down by 1.8% respectively.

On Tuesday, the FIIs were net buyers of Rs. 85 crores in the cash markets.
As per the provisional figures, FIIs were net sellers of Rs. 275 crores in the cash market on Wednesday, while they were net buyers of Rs. 433 crores in the F&O markets.

Today, we expect the Markets to open down following weak global cues & remain volatile ahead of the weekly inflation data. Among the sectoral indices, Banks & Consumer Durables are looking good, while IT, Realty & Oil & Gas indices are looking weak.

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