Oct 10, 2008

Markets likely to open down following weak Asian cues, but could find support at lower levels

11 Sep 2008 | 10:04
Markets likely to open down following weak Asian cues, but could find support at lower levels

The markets closed on a weak note on Wednesday with the BSE Sensex closing at 14662.6, down by 1.6% over Tuesday’s close. at 14,662.6. After opening down following weak global cues, the Nifty tried to recover in the early hour of trade. However, it couldn’t sustain at higher levels & slipped from an intra-day high of 4467.5. Thereafter it remained weak through the entire session & closed deep in the red at 4400, down by 1.5% over Tuesday’s close. The NSE cash turnover stood at Rs. 11988 crores in comparison to
Rs. 10,403 crores on Tuesday. The market breadth was negative on BSE with the advance-decline ratio of 1:2. All the sectoral indices closed in the red with Metals, Oil & gas & Power indices being the major losers, falling by 5.5%, 2.2% & 1.7% respectively.

U.S. stocks rose on Wednesday as OPEC's move to shore up oil prices boosted energy shares & Texas Instruments' outlook soothed fear about technology spending even as worries persisted about the health of the banking sector.
The Dow Jones & Nasdaq increased by 0.3% and 0.9% respectively. The Indian ADRs ended on a mix note with Infosys & Satyam closing up by 1.9%, 1.1%, while Wipro closed down by 0.2%. HDFC & ICICI Bank closed up by 2% & 3.1%.
Dr Reddy’s was down by 1.7%. Among the Latin American markets, the Mexican markets closed flat, while the Brazilian markets increased by 2.5%. Among the Metal prices, Aluminium & Copper decreased by 0.9% & 0.5% respectively, while Zinc & Nickel decreased by 0.7% & 1.3% respectively. The light crude oil for October decreased by 0.7% to settle at $102.58 a barrel. Today, the Asian Markets are trading on a weak note with Nikkei & Hang Seng trading down by 1.2% & 2.5% respectively, while Singapore Strait is down by 1.6%.
However Shanghai is trading down by 1.9%.

On Tuesday, the FIIs were net sellers of Rs. 186 crores in the cash markets, while they were net sellers of Rs. 33 crores in the F&O Markets.
As per the provisional figures, FIIs were net sellers of Rs. 1037 crores in the cash market on Wednesday, while they were net sellers of Rs. 1267 crores in the F&O markets.

Today, we expect the Markets to open down following weak Asian cues.
However, it could find support at lower levels. Weekly inflation data to be released this evening will be keenly watched by the markets.