Oct 10, 2008

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

10 Oct 2008 | 10:37 Markets likely to open gap down & remain weak through the day following weak global cues

The Indian Markets managed to recover from the lows on Wednesday, yet closed on a weak note. The BSE Sensex closed at 11328.4, down by 3.1% over Tuesday’s close. After a gap down opening, the Nifty continued to fall & made an intra-day low of 3329.5. However, post noon, it witnessed a sharp pull back & managed to close at 3513.7, down by 2.6% over Tuesday’s close.
The NSE cash turnover stood at Rs. 12819 crores in comparison to Rs. 12804 crores on Tuesday. The market breadth was negative on BSE with the advance-decline ratio of 1:5. All the sectoral indices ended in the red with Consumer Durables, FMCG & IT being the major losers, which fell by 6.8%, 5.2% & 4.9% respectively.

U.S stocks plummeted for a seventh straight session on Thursday as investors bet recent moves by authorities worldwide to thaw frozen credit markets would not be enough to avert a global recession. Dow Jones & Nasdaq decreased by 7.3% & 5.5% respectively. The Indian ADRs closed on a weak
note with Infosys, Wipro & Satyam decreasing by 2%, 7.4% & 3.9%
respectively. Dr. Reddy’s closed down by 5.1%, while HDFC Bank closed down by 5.4%. However, MTNL closed up by 10.4%. Among the Latin American markets, the Mexican markets decreased by 1.8%. Among the Metal prices, Aluminium & Copper decreased by 0.9% & 1.8% respectively, Zinc & Nickel decreased by 2.9% & 4.4% respectively. The light crude oil for November decreased by 2.7% to settle at $86.6 a barrel. Today, the Asian Markets are trading down with Nikkei & Hang Seng trading down by 10.6% & 7.4% respectively, while Shanghai & Singapore Strait are trading down by 3.9% & 6.7% respectively.

On Tuesday, the FIIs were net sellers of Rs. 548 crores in the cash markets, while they were net buyers of Rs. 22 crores in the F&O Markets.
Mutual Funds were net sellers of Rs. 307 crores. As per the provisional figures, FIIs were net sellers of Rs. 1056 crores in the cash market on Wednesday, while they were net sellers of Rs. 205 crores in the F&O markets.

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

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