Oct 10, 2008

Markets expected to open gap down following weak global cues

08 Oct 2008 | 10:02 Markets expected to open gap down following weak global cues

The Indian Markets witnessed a highly volatile session on Tuesday, as the BSE Sensex witnessed a huge intra-day swing of 680 points from a high of
12181.4 to finally close down by 0.9% at 11695.2. After opening on a strong note & making an intra-day high of 3732.6, the Nifty witnessed huge selling pressure & slipped in the negative terrain. It remained highly volatile through the entire session, making an intra-day low of 3537. However, it managed to recover from those lows during the last two hours of trade to close on a note at 3606.6. The NSE cash turnover stood at Rs. 12804 crores in comparison to Rs. 10367 crores on Monday. The market breadth was negative on BSE with the advance-decline ratio of 0.4:1. Among the sectoral indices, Oil & Gas & PSUs were the outperformers, which increased by 1.3% & 0.8% respectively. However, Capital Goods & IT were the major losers, which fell by 4% & 3% respectively.

The U.S. stocks tumbled for a fifth straight session on Tuesday, capping the Dow's biggest five-day point loss ever, as fears mounted that the rapidly spreading credit crisis would drag the economy into a deep recession. Dow Jones & Nasdaq decreased by 5.1% & 5.8% respectively. The Indian ADRs closed sharply lower with Infosys, Wipro & Satyam decreasing by 4.5%, 14.6% & 7.8% respectively. ICICI & HDFC Bank decreased by 3.2% & 6.1% respectively. MTNL closed down by 18.9%. Among the Latin American markets, the Mexican markets decreased by 4%, while the Brazilian Markets fell by 4.7%. Among the Metal prices, Aluminium & Copper increased by 0.8% & 0.2% respectively, while Zinc & Nickel decreased by 0.6% & 1.8% respectively.
The light crude oil for November increased by 2.6% to settle at $90.1 a barrel. Today, the Asian Markets are trading down with Nikkei & Hang Seng trading down by 4.5% & 5.6% respectively, while Shanghai & Singapore Strait are trading down by 3% & 3.8% respectively.

On Monday, the FIIs were net sellers of Rs. 1121 crores in the cash markets, while Mutual Funds were net sellers of Rs. 230 crores. As per the provisional figures, FIIs were net sellers of Rs. 680 crores in the cash market on Tuesday, while they were net buyers of Rs. 21 crores in the F&O markets.

Today, we expect the Markets to open gap down following weak global cues.