Oct 10, 2008

Markets expected to open flat to marginally up & rise further during the day on account of ease in P-note restrictions & CRR cut

07 Oct 2008 | 09:51 Markets expected to open flat to marginally up & rise further during the day on account of ease in P-note restrictions & CRR cut

The Indian Markets continued its downfall on Monday, as the BSE Sensex breached 12000 levels to close deep in the red at 11801.7, down by 5.8% over Friday’s close. After a gap down opening, the Nifty continued to slide further through the day. However, towards the end, it managed to recover from an intra-day low of 3581.6 to close at 3602.4, down by 5.7% over Friday’s close. The NSE cash turnover stood at Rs. 10367 crores in comparison to Rs. 11892 crores on Friday. The market breadth was negative on BSE with the advance-decline ratio of 1:8. All the sectoral indices ended in the red, with Consumer Durables, Realty & Metals being the major losers, decreasing by 11%, 9.9% & 9.3% respectively.

The U.S. stocks slid for a fourth straight day on Monday, leaving the Dow below 10,000 for the first time in four years, on fears that the global economy was hurtling into recession despite government efforts to contain the fast-spreading financial crisis. Dow Jones & Nasdaq decreased by 3.6% & 4.3% respectively. The Indian ADRs closed on a weak note with Infosys, Wipro & Satyam decreasing by 5.6%, 1.9% & 6.1% respectively. ICICI & HDFC Bank decreased by 9.4% & 12.8% respectively. Dr. Reddy's was down by 8.9%. Among the Latin American markets, the Mexican markets decreased by 5.4%. Among the Metal prices, Aluminium & Copper decreased by 2% & 4.6% respectively, Zinc & Nickel decreased by 2.2% & 5.7% respectively. The light crude oil for November decreased by 6.5% to settle at $87.8 a barrel. Today, the Asian Markets are trading down with Nikkei & Kospi trading down by 3.1% & 0.2% respectively, while Shanghai is trading down by 1.7%. However, Singapore Strait is trading up by 1.7%.

On Friday, the FIIs were net sellers of Rs. 1046 crores in the cash markets, while Mutual Funds were net sellers of Rs. 343 crores. As per the provisional figures, FIIs were net sellers of Rs. 1169 crores in the cash market on Monday, while they were net sellers of Rs. 1209 crores in the F&O markets.

Today, we expect the Markets to open flat to marginally up & rise further during the day on account of ease in P-note restrictions & CRR cut by 50 bps yesterday.

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