The market may extend last two days' fall that followed an earlier strong rebound tracking weak Asian stocks. Asian stocks fell sharply for a third day as layoffs and corporate profit warnings piled up in the face of a rapidly slowing global economy. Back home, an unexpected rise in inflation pulled the Sensex down nearly 4% on Thursday, 6 November 2008, in a highly choppy trade.
The rise in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening deals on Friday, 7 November 2008, on expectations that losses in overseas markets would lead the stock market to drop and spur foreigners to continue withdrawing their investments. At 9:02 IST, the partially convertible rupee was at 47.95/96 per dollar, compared to Thursday's close of 47.66/69 per dollar.
South Korea's central bank cut interest rates on Friday for the third time in a month, joining a global wave of monetary easing aimed at shoring up the world economy and calming panicked financial markets. The Bank of England spooked investors on Thursday, 6 November 2008, by slashing its key rate by 1.5%, bringing borrowing costs down to the lowest since the 1950s.
US stocks overnight posted their worst two-day slide since October 1987, though S&P 500 futures were mostly unchanged as investors awaited the latest US payroll report due on Friday
US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand
The BSE Sensex lost 8.4% in two trading sessions to 9,734.22 on Thursday, 6 November 2008, from 10,631.12 on 4 November 2008. The slide followed a 24.93% jump in the preceding five trading sessions.
No comments:
Post a Comment