Oct 10, 2008

Markets expected to open down initially following weak Asian cues, but could recover from the lows later during the day

26 Sep 2008 | 09:56
Markets expected to open down initially following weak Asian cues, but could recover from the lows later during the day

The Indian Markets closed on a weak note on Thursday with the BSE Sensex closing at 13547.2 down by 1.1% over Wednesday’s close. After opening flat, the Nifty started showed signs of weakness. Selling pressure pulled the Nifty down through the day. However, after making an intra-day low of 4077.5, it recovered towards the end to close at 4110.6, down by 1.2% over Wednesday's close. The NSE cash turnover stood at Rs. 15311 crores in comparison to Rs. 11829 crores on Wednesday. The market breadth was negative on BSE with the advance-decline ratio of 1:2. Among the sectoral indices, Autos ended marginally in the positive by 0.1%, while the rest of the indices ended in the red with IT, TECk & Realty falling the most by 2% each.

Wall Street snapped a three-day losing streak on Thursday as Congress closed in on a deal for a $700 billion financial-sector bailout that investors hope will thaw credit markets and revive lending. Dow Jones & Nasdaq increased by 1.8% & 1.4% respectively. The Indian ADRs ended on a positive note with Infosys, Wipro & Satyam increasing by 1.7%, 5.4% & 3.2% respectively. Tata Communications & MTNL increased by 16.9% & 11.8% respectively. However, ICICI Bank decreased by 1.1%. Among the Latin American markets, the Mexican markets increased by 2.8%, while Brazilian
Market closed up by 4%. Among the Metal prices, Aluminium & Copper
decreased by 1.1% & 1.8% respectively, Zinc & Nickel decreased by 0.4% & 0.7% respectively. The light crude oil for October increased by 2.7% to settle at $108 a barrel. Today, the Asian Markets are trading weak with Hang Seng & Shanghai trading down by 1.2% & 0.5% respectively. Nikkei & Singapore Strait are trading down by 0.2% & 1.2% respectively.

On Wednesday, the FIIs were net sellers of Rs. 174 crores in the cash markets, while they were net sellers of Rs. 110 crores in the F&O Markets.
Mutual Funds were net sellers of Rs. 226 crores. As per the provisional figures, FIIs were net sellers of Rs. 1050 crores in the cash market on Thursday, while they were net sellers of Rs. 420 crores in the F&O markets.

Today, we expect the Markets to open down initially following weak Asian cues. However, it could witness some recovery from the lows later during the day.

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