Oct 10, 2008

Markets expected to open down & remain weak through the day following negative global cues

23 Sep 2008 | 10:32
Markets expected to open down & remain weak through the day following negative global cues

Monday was a session of consolidation as the Indian Markets traded in a narrow range through the day & closed marginally in the red. The BSE Sensex closed at 13995, down by 0.3% over Friday’s close. The Nifty made a positive opening & made an intra-day high of 4303.25 in the first ten minutes. However, it couldn’t sustain at those high levels & started showing signs of weakness. Post noon, it slipped in the negative terrain to make an intra-day low of 4202.4. Towards the end, it managed to recover slightly & closed at 4223.1, down by 0.5% over Friday's close. The NSE cash turnover stood at Rs. 11519 crores in comparison to Rs. 16294 crores on Friday. The market breadth was neutral on BSE with the advance-decline ratio of 1:1. Among the sectoral indices, FMCG & Metals were the outperformers, which increased by 1.4% & 1% respectively. Capital Goods &
Power indices were the major losers, which fell by 2.2% & 1.6%

The U.S. markets tumbled on Monday as investors worried that $700 billion bailout for the financial sector may not resuscitate a slumping economy, while a record spike in oil prices renewed concern about consumer spending.
Dow Jones & Nasdaq decreased by 3.3% & 4.2% respectively. The Indian ADRs ended in the red with Infosys, Wipro & Satyam decreasing by 4%, 11.2% & 3.6% respectively. Tata Motors decreased by 6.2%. ICICI & HDFC Bank closed down by 7.8% & 4.4% respectively. Among the Latin American markets, the Mexican & Brazilian markets decreased by 2.2% & 2.9% respectively. Among the Metal prices, Aluminium & Copper increased by 1.6% & 3.9% respectively, while Zinc & Nickel increased by 4.9% & 3.9% respectively. The light crude oil for October increased sharply by 14% to settle at $120 a barrel. Today, the Asian Markets are trading down with Hang Seng & Singapore Strait trading up by 2.9% & 2.4% respectively, while Shanghai is trading down by 1.1%.

On Friday, the FIIs were net buyers of Rs. 1168 crores in the cash markets, while Mutual Funds were net buyers of Rs. 168 crores. As per the provisional figures, FIIs were net buyers of Rs. 138 crores in the cash market on Monday, while they were net buyers of Rs. 512 crores in the F&O markets.

Today, we expect the Markets to open down & remain weak through the day following negative global cues. However intra-day bounces from the lows cannot be ruled out. Among the sectoral indices, Capital Goods & Power look weak & could underperform.