Oct 10, 2008

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

06 Oct 2008 | 10:01 Markets expected to open gap down & remain weak through the day following negative global cues

The Indian Markets witnessed a huge sell off on Friday, as the BSE Sensex closed on a weak note at 12526.3, down by 4.1% over Wednesday’s close.
After opening down, the Nifty made an attempt to recover in the early hour of trade. However, it couldn’t enter in the positive terrain & thereafter witnessed a huge sell-off through the entire session. Towards the end it made an intra-day low of 3804.9 before it managed to recover slightly to close at 3818.3, down by 3.4% over Wednesday’s close. The NSE cash turnover stood at Rs. 11892 crores in comparison to Rs. 10793 crores on Wednesday.
The market breadth was negative on BSE with the advance-decline ratio of 1:3. All the sectoral indices ended in the red, with Metals, Oil & Gas & Consumer Durables being the major losers, decreasing by 7%, 5.7% & 4.2% respectively.

Wall Street ended its worst week in seven years with another tumble on Friday on fears that the $700 billion financial rescue package may not unblock credit markets & stave off a U.S. recession. Dow Jones & Nasdaq decreased by 1.5% each. The Indian ADRs closed on a weak note with Infosys & Satyam decreasing by 3.3% & 3.6% respectively. However, Wipro increased by 1.8%. ICICI Bank decreased by 7%, while Tata Communications decreased by 7.9%. Among the Latin American markets, the Mexican markets decreased by 4.3%, while Brazilian Market closed down by 3.5%. Among the Metal prices, Aluminium & Copper decreased by 4% & 4.9% respectively, Zinc & Nickel decreased by 4.6% & 3.4% respectively. The light crude oil for November ended flat at $93.88 a barrel. Today, the Asian Markets are trading down with Nikkei & Hang Seng trading down by 3.6% & 3% respectively, while Kospi & Shanghai are trading down by 4.2% & 3.6% respectively. Even Singapore Strait is trading down by 2.5%.

On Wednesday, the FIIs were net sellers of Rs. 284 crores in the cash markets. As per the provisional figures, FIIs were net sellers of Rs. 1662 crores in the cash market on Friday, while they were net sellers of Rs. 89.4 crores in the F&O markets.

Today, we expect the Markets to open gap down & remain weak through the day, following negative global cues.

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