Oct 10, 2008

Markets likely to open marginally up following positive global cues & take further direction from the IIP data for month of July 2008 to be released t

12 Sep 2008 | 09:55
Markets likely to open marginally up following positive global cues & take further direction from the IIP data for month of July 2008 to be released today

The Indian Market continued its downtrend on Thursday as the BSE Sensex closed deep in the red at 14324.3, down by 2.3% over Wednesday’s close. The Nifty opened gap down & continued to show weakness through the entire trading session. Towards the end, it made an intra-day low of 4272.8 before closing at 4290.3, down by 2.5% over Wednesday’s close. The NSE cash turnover stood at Rs. 10783 crores in comparison to Rs. 11988 crores on Wednesday. The market breadth was negative on BSE with the advance-decline ratio of 1:2. All the sectoral indices closed in the red with Oil & Gas, Power & Realty falling the most by 3.4%, 3% & 2.5% respectively.

The U.S. stocks rose on Thursday as a report that major U.S. investment bank Lehman Brothers is shopping itself to possible suitors, including Bank of America, lifted the financial shares towards the end of the session. Dow Jones & Nasdaq increased by 1.5% & 1.3% respectively. The Indian ADRs ended on a weak note with Infosys, Wipro & Satyam closing down by 5.1%, 4.7% & 2.7% respectively. HDFC & ICICI Bank closed down by 1.7% & 2.9%. However, Dr Reddy’s was up by 1.1%. Among the Latin American markets, the Mexican markets closed down marginally by 0.3%, while Brazilian markets increased by 3.3%. Among the Metal prices, Aluminium & Copper increased by 0.2% &
0.3% respectively, while Zinc & Nickel increased by 0.6% & 0.5%
respectively. The light crude oil for October decreased by 1.7% to settle at $100.9 a barrel. Today, the Asian Markets are trading in the green with Nikkei & Hang Seng trading up by 1.1% & 0.2% respectively, while Singapore Strait & Shanghai are trading up by 1.1% & 0.2% respectively.

On Wednesday, the FIIs were net sellers of Rs. 870 crores in the cash markets. Mutual Funds were net buyers of Rs. 115 crores. As per the provisional figures, FIIs were net sellers of Rs. 1507 crores in the cash market on Thursday, while they were net sellers of Rs. 1928 crores in the F&O markets.

Today, we expect the Markets to open marginally up following positive global cues. However, it would take further direction from the IIP data for month of July 2008 to be released today. Among the sectoral indices, some bounce back could be seen in Oil & Gas & Power after falling sharply over the last two trading sessions. However, IT index is looking weak & could underperform.

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