Oct 10, 2008

Markets expected to open on a flat note & remain cautious ahead of weekly inflation data to be released tomorrow

17 Sep 2008 | 10:04
Markets expected to open on a flat note & remain cautious ahead of weekly inflation data to be released tomorrow

On Tuesday, the Indian Market witnessed a smart recovery from the lows & closed on a flat note. The BSE Sensex closed flat at 13518.8. The Nifty opened gap down & made an intra-day low of 3919.3 in the first hour of trade. However, it bounced back sharply from those lows during the day.
Towards the end it entered the positive terrain, making an intra-day high of 4090.1 before closing flat at 4074.9. The NSE cash turnover stood at
Rs. 12316 crores in comparison to Rs. 11936 crores on Monday. The market breadth was negative on BSE with the advance-decline ratio of 1:2. Among the sectoral indices, Oil & Gas & Bank indices outperformed, increasing by 1.3% & 0.9% respectively. However, Realty & Consumer Durables were the major losers, which fell by 3.9% & 2.9% respectively.

The U.S. markets rebounded on Tuesday on growing optimism that U.S.
authorities may finance a rescue of insurer American International Group (AIG). Dow Jones & Nasdaq both closed up by 1.3%. The Indian ADRs ended on a mix note with Infosys, Wipro & Satyam increasing by 4.6%, 1.7% & 0.8% respectively. HDFC Bank closed up by 3.7%. However, ICICI Bank &
Dr. Reddy’s decreased by 3.5% & 2.2% respectively. Tata Communications
increased by 11.6%. Among the Latin American markets, the Brazilian markets increased by 1.7%. Among the Metal prices, Aluminium & Copper decreased by 1.2% & 0.4% respectively, while Zinc & Nickel decreased by 0.3% & 1.7% respectively. The light crude oil for October decreased by 4.8% to settle at $91.15 a barrel. Today, the Asian Markets are trading on a mix note with Nikkei trading up by 2%. However Hang Seng, Shanghai & Singapore Strait are trading down by 0.9%, 1.5% & 0.9% respectively.

On Monday, the FIIs were net sellers of Rs. 629 crores in the cash markets.
However, Mutual Funds were net buyers of Rs. 122 crores. As per the provisional figures, FIIs were net sellers of Rs. 1303 crores in the cash market on Tuesday, while they were net sellers of Rs. 1053 crores in the F&O markets.

Today, we expect the Markets to open flat & remain cautious ahead of weekly inflation data to be released tomorrow. Among the indices, IT & Ba

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