The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have decided to implement ‘pre-market call auctions’ which is a special 15-minute trading window starting at 9:00 am from October 18.
Pre-market opening features:
•a very useful mechanism particularly on high volatility days. This will matter more when there are sudden major developments
•No entry, modification, cancellation executed
•Orders accumulated for specified period
•Price and quantity information is shared
•Provisions to discourage manipulation
•Limit and market orders is allowed
•IOC conditions are not allowed
•Iceberg orders are not allowed
•Limit orders prioritised over market orders
•Price banding at 20% applicable
•Circuit filter for continous sessions only
•Open market orders to move as limit orders at open price
This also means that all other segments, including derivatives and non-index stocks, will trade only at 9:15 am.
Both the exchanges have already received the go-ahead from market regulator the Securities and Exchange Board of India (Sebi) to start the ‘pre-market call auctions’.
The aim of this exercise is to enable better price discovery in the market. Sayee Srinivasan, head–product Strategy at BSE, says, “The call auction is the solution to take care of the uncertainty that is there in people’s mind about where a stock should be priced at the open.”
So how does this work? Here is the break-up of these 15 minutes. At 9:00 am, investors will be able to place their ‘buy’ and ‘sell’ orders for Nifty or Sensex stocks for a period of seven minutes. During these seven minutes, no trades will be executed.
However, the exchanges will discover an ‘indicative price’ for these stocks and the ‘indicative index levels.’ While these indicative levels will continue to change through the course of the seven minutes, they will be reflective of the general direction of the market and investors can then accordingly place their bids.
What is also interesting is that if based on these indicative prices investors wish to change or cancel their orders they will be allowed to do so. The exchanges will suddenly halt this order-taking randomly between 9:07 and 9:08 am in order to check any market manipulation.
After this stoppage, till 9:12 am orders will be matched and opening prices of the stocks and the opening levels for the indices will be discovered. It is during this time that the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Extreme care has also been taken to combat volatility. While during the auction period there is no provision for a circuit filter, a 20% price band will be applicable on all bid prices.
Showing posts with label Pre-Market Report. Show all posts
Showing posts with label Pre-Market Report. Show all posts
Thursday, October 14, 2010
Wednesday, January 7, 2009
Pre market 07 Jan 2009
The market may extend strong gains of the past few days on firm Asian stocks, resumption of buying by foreign funds and on reports that state run banks are likely cut lending rates further next month. But concerns about Q3 results may keep a lid on prices.
Asia-Pacific stocks extended recent gains on Wednesday, 7 January 2009, on hopes for a US economic stimulus package. Key benchmark indices in Japan, Hong Kong, Singapore, South Korea, Australia and Taiwan were up by between 0.07% to 1.89%
US stocks gained on Tuesday, 6 January 2009, on the increased likelihood of a government stimulus package after the release of minutes from the last Federal Reserve policy meeting painted a dismal picture of the US economy. The Dow Jones industrial average was up 62.21 points, or 0.69%, to 9,015.10. The Standard & Poor's 500 Index gained 7.25 points, or 0.78%, to 934.70. The Nasdaq Composite Index added 24.35 points, or 1.5%, to 1,652.38.
US President-elect Barack Obama's proposed package of spending and tax-cut measures is estimated at nearly $775 billion over the next two years.
Closer home, foreign institutional investors (FIIs) have resumed buying. As per provisional data released by the stock exchanges after trading hours, foreign funds on Tuesday, 6 January 2009, bought shares worth a net Rs 374.02 crore. Foreign funds had bought shares worth a net Rs 530 crore in three trading sessions from 1 January 2009 to 5 January 2009. After a sustained inflows earlier in the month in December 2008, FIIs had turned sellers towards end of that month.
Coordinated policy measures from the central bank and the government to boost sagging growth has boosted the bourses. The BSE Sensex jumped 1,007.01 points or 10.79% to 10,335.93 on 6 January 2009 from a recent low of 9,328.92 on 26 December 2008.
The Reserve Bank of India (RBI) on Friday, 5 January 2009, cut the repo rate and the reverse repo rate by 100 basis points each, with immediate effect. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks. After the latest cuts, the repo rate is now at 5.5% and the reverse repo is now at 4%, the lowest ever.
The RBI also announced a cut in cash reserve ratio, the proportion of deposits banks must keep with the central bank, by 50 basis points to 5% with effect from 17 January 2009. Lower interest rates may revive the domestic economy which has been slowing faster than expected due to high interest rates and the global financial crisis.
Complementing monetary easing by the RBI, the government enhanced the spending power of states with specific measures to boost credit availability in the second fiscal stimulus package. It offered additional sops to exporters and the small-scale sector, besides raising the level of protection for cement and steel sectors a tad. It has also incentivised purchase of commercial vehicles. Both the RBI and the government measures were announced after trading hours on Friday, 2 January 2009.
Asia-Pacific stocks extended recent gains on Wednesday, 7 January 2009, on hopes for a US economic stimulus package. Key benchmark indices in Japan, Hong Kong, Singapore, South Korea, Australia and Taiwan were up by between 0.07% to 1.89%
US stocks gained on Tuesday, 6 January 2009, on the increased likelihood of a government stimulus package after the release of minutes from the last Federal Reserve policy meeting painted a dismal picture of the US economy. The Dow Jones industrial average was up 62.21 points, or 0.69%, to 9,015.10. The Standard & Poor's 500 Index gained 7.25 points, or 0.78%, to 934.70. The Nasdaq Composite Index added 24.35 points, or 1.5%, to 1,652.38.
US President-elect Barack Obama's proposed package of spending and tax-cut measures is estimated at nearly $775 billion over the next two years.
Closer home, foreign institutional investors (FIIs) have resumed buying. As per provisional data released by the stock exchanges after trading hours, foreign funds on Tuesday, 6 January 2009, bought shares worth a net Rs 374.02 crore. Foreign funds had bought shares worth a net Rs 530 crore in three trading sessions from 1 January 2009 to 5 January 2009. After a sustained inflows earlier in the month in December 2008, FIIs had turned sellers towards end of that month.
Coordinated policy measures from the central bank and the government to boost sagging growth has boosted the bourses. The BSE Sensex jumped 1,007.01 points or 10.79% to 10,335.93 on 6 January 2009 from a recent low of 9,328.92 on 26 December 2008.
The Reserve Bank of India (RBI) on Friday, 5 January 2009, cut the repo rate and the reverse repo rate by 100 basis points each, with immediate effect. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks. After the latest cuts, the repo rate is now at 5.5% and the reverse repo is now at 4%, the lowest ever.
The RBI also announced a cut in cash reserve ratio, the proportion of deposits banks must keep with the central bank, by 50 basis points to 5% with effect from 17 January 2009. Lower interest rates may revive the domestic economy which has been slowing faster than expected due to high interest rates and the global financial crisis.
Complementing monetary easing by the RBI, the government enhanced the spending power of states with specific measures to boost credit availability in the second fiscal stimulus package. It offered additional sops to exporters and the small-scale sector, besides raising the level of protection for cement and steel sectors a tad. It has also incentivised purchase of commercial vehicles. Both the RBI and the government measures were announced after trading hours on Friday, 2 January 2009.
Friday, December 5, 2008
Pre Market Report 05/12/2008
The market may extend Thursdayâ€(TM)s (4 December 2008) solid gains on expectations of a stimulus package from the government and the Reserve Bank of India (RBI). However, Indo-Pak tension after the major terror strikes in Mumbai last week, will cap the upside.
The BSE Sensex rose 5.5% on Thursday to its highest close in more than two weeks as expectations for an interest rate cut received a boost from slower-than-expected rise in inflation. As per the provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 307.14 crore and domestic funds purchases shares worth a net Rs 79.24 crore on Thursday.
As per the market buzz, the Reserve Bank of India (RBI) is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively on Saturday, 6 December 2008, in an attempt to shield the domestic economy from the global economic slowdown. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year through 22 November 2008, lower than previous week's 8.84% rise, data released by the government on Thursday, showed. Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.
Meanwhile, the Indian government is slated to announce a slew of measures on Saturday to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Asian stocks were mostly in the green on Friday, 5 December 2008 following record rate cuts by central banks in Europe. But caution prevail ahead of what is expected to be dismal US employment data due later in the day.
The BSE Sensex rose 5.5% on Thursday to its highest close in more than two weeks as expectations for an interest rate cut received a boost from slower-than-expected rise in inflation. As per the provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 307.14 crore and domestic funds purchases shares worth a net Rs 79.24 crore on Thursday.
As per the market buzz, the Reserve Bank of India (RBI) is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively on Saturday, 6 December 2008, in an attempt to shield the domestic economy from the global economic slowdown. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year through 22 November 2008, lower than previous week's 8.84% rise, data released by the government on Thursday, showed. Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.
Meanwhile, the Indian government is slated to announce a slew of measures on Saturday to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Asian stocks were mostly in the green on Friday, 5 December 2008 following record rate cuts by central banks in Europe. But caution prevail ahead of what is expected to be dismal US employment data due later in the day.
Thursday, December 4, 2008
Pre MArket 4th Dec 2008
The market may edge higher on positive cues from global markets and on likely government measures to pump prime the economy. However, Indo-Pak tension after the major terror strike in Mumbai last week will cap the upside.
Chinese stocks led gains in Asian stocks after China on Wednesday, 3 December 2008, announces measures whereby the financial policy would be harnessed to support the economy. The Shanghai Composite was up 3%. Other Asian share nudge higher on buying in defensive plays such as drug makers or domestic demand-driven plays. Key benchmark indices in Hong Kong, Singapore and South Korea were up by between 0.06% to 1.9%. But Japanâ€(TM)s Nikkei had slipped into the red in contrast to earlier gains.
China will make use of required reserves as well as interest rates and the exchange rate to ensure ample liquidity in the banking system, the government said on Wednesday. The State Council, China's cabinet, also approved measures aimed at stabilising the domestic stock market, boosting bond issuance and increasing the supply of credit.
Defensive stocks lifted Wall Street on Wednesday, 3 December 2008, in spite of new data -- including large job losses among US employers and a slumping service sector -- that failed to inspire confidence in a US economy already in recession for a year.
Other economies worldwide are faring no better. A corporate survey in Japan signaled the country's economic performance in the third quarter may have been even worse than first reported.
Closer home, the Indian government is slated to announce a slew of measures at the weekend to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Reserve Bank of India (RBI), meanwhile, is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively at the weekend.
Meanwhile, the Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Chinese stocks led gains in Asian stocks after China on Wednesday, 3 December 2008, announces measures whereby the financial policy would be harnessed to support the economy. The Shanghai Composite was up 3%. Other Asian share nudge higher on buying in defensive plays such as drug makers or domestic demand-driven plays. Key benchmark indices in Hong Kong, Singapore and South Korea were up by between 0.06% to 1.9%. But Japanâ€(TM)s Nikkei had slipped into the red in contrast to earlier gains.
China will make use of required reserves as well as interest rates and the exchange rate to ensure ample liquidity in the banking system, the government said on Wednesday. The State Council, China's cabinet, also approved measures aimed at stabilising the domestic stock market, boosting bond issuance and increasing the supply of credit.
Defensive stocks lifted Wall Street on Wednesday, 3 December 2008, in spite of new data -- including large job losses among US employers and a slumping service sector -- that failed to inspire confidence in a US economy already in recession for a year.
Other economies worldwide are faring no better. A corporate survey in Japan signaled the country's economic performance in the third quarter may have been even worse than first reported.
Closer home, the Indian government is slated to announce a slew of measures at the weekend to pump prime the economy. The likely measures include a Rs 2000-crore export package, a further relaxation in external commercial borrowings norms and Rs 15,000-crore budgetary support for infrastructure.
The Reserve Bank of India (RBI), meanwhile, is expected to cut repo and reverse repo rates to the extent of 200 basis points and 125 basis points respectively at the weekend.
Meanwhile, the Indian government is reportedly considering various options including a strike on Pakistan to dismantle its terror bases in response to the recent Mumbai terror attacks. As a strike on Pakistan could lead to a full scale war between the two nuclear armed countries, India is maintaining a cautious approach and wants to gauge every possible ramification of its decision, reports suggest.
Tension between India and Pakistan have mounted after the Mumbai attacks. India has blamed Islamist militants based in Pakistan for the attacks.
Monday, December 1, 2008
Pre Market Report 01/12/2008
The end of the operation to flush out terrorists on Saturday, 29 November 2008 and expectations of further cut in interest rates may lift the market which on Friday, 28 November 2008, shrugged off major terrorists attacks on Mumbai, Indiaâ€(TM)s financial capital late on Wednesday, 26 November 2008. There are expectations that the Reserve Bank of India (RBI) will cut rates further to shore up confidence battered by the global financial crisis and the series of attacks around the city.
With P Chidambaram set to take over as the new home minister, there is a perception that the RBI may gain more breathing space while making policies. There has been criticism in recent weeks that a series of policy measures were being driven by the finance ministry. But now with Prime Minister (PM) Dr Manmohan Singh, himself a former RBI governor, holding additional charge of the finance ministry, the prospects of the governor coming into his own are far greater.
The PM, the architect of early 1990s economic reforms, holding additional charge of the finance ministry will also be perceived as a positive sign for the stock markets in terms of ensuring continuity and signaling a pro-reform image even though just a few months are left as parliamentary elections must be held before May 2009.
Asian markets were mixed. Japan's Nikkei average fell 2% by midday as global recession fears prompted investors to book profits after last week's rally, with exporters such as Toyota Motor Corp slipping on a firmer yen.
Early results from the Black Friday weekend that marks the start of the Christmas shopping season in the United States showed that sales grew in shops and online, fuelled by repeat trips and deep discounts. But an early rush is unlikely to save what is shaping up to be a bleak sales season, reports suggest.
With P Chidambaram set to take over as the new home minister, there is a perception that the RBI may gain more breathing space while making policies. There has been criticism in recent weeks that a series of policy measures were being driven by the finance ministry. But now with Prime Minister (PM) Dr Manmohan Singh, himself a former RBI governor, holding additional charge of the finance ministry, the prospects of the governor coming into his own are far greater.
The PM, the architect of early 1990s economic reforms, holding additional charge of the finance ministry will also be perceived as a positive sign for the stock markets in terms of ensuring continuity and signaling a pro-reform image even though just a few months are left as parliamentary elections must be held before May 2009.
Asian markets were mixed. Japan's Nikkei average fell 2% by midday as global recession fears prompted investors to book profits after last week's rally, with exporters such as Toyota Motor Corp slipping on a firmer yen.
Early results from the Black Friday weekend that marks the start of the Christmas shopping season in the United States showed that sales grew in shops and online, fuelled by repeat trips and deep discounts. But an early rush is unlikely to save what is shaping up to be a bleak sales season, reports suggest.
Monday, November 17, 2008
Pre Market Report 17/11/2008
More measures announced by the Reserve Bank of India (RBI) to shield the Indian economy from the global economic slowdown may lift the market from a recent steep fall. But stepping up of sales by foreign funds in the last two days may weigh on the sentiments. On the flip side, gains in Asian markets may support the domestic bourses. Asian markets rose even as there was no concrete move at a meeting of the G20 countries on Friday 14 November-Saturday-15 November 2008 to avert a looming global recession.
RBI on Saturday, 15 November 2008, announced measures to improve money market liquidity and help exporters. The measures include extension of a special repurchase facility to provide liquidity for mutual funds and non-banking finance companies till March 2009, increase in the limit on export credit refinance available to banks, allowing housing finance companies to raise funds through short-term overseas borrowings, reduction in provisioning on standard assets of banks to a uniform level of 0.4%, and reduction in risk weights for banks on commercial real estate and on unrated claims on corporates.
The central bank also said it would consider proposals from local firms to buy back foreign currency convertible bonds early.
Foreign funds have stepped up selling on the bourses. As per provisional data, foreign institutional investors (FIIs) dumped stocks worth a net Rs 811.52 crore on Friday, 14 November 2008. On Wednesday, 12 November 2008, FIIs had pressed sales worth a net Rs 615.10 crore, much higher than Rs 266.50 crore on the previous trading session. The market was closed on Thursday, 13 November 2008, for a public holiday.
Political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G20 political leaders, pulled the market sharply lower in the past three trading sessions. The BSE Sensex has declined 1150.74 points or 10.92% to 9,385.42 on Friday, 14 November 2008, from 10536.16 on 10 November 2008.
Stocks were mixed in Asia. The Nikkei average rose 1.2% in thin trade as some investors rushed in to buy following an initial sell-off after data showed Japan's economy was in recession. Key benchmark indices in Hong Kong, South Koera, Singapore, Taiwan and China were up by between 0.23% to 1.3%.
The G20 political leaders agreed Saturday, 15 November 2008, to a host of fiscal and monetary steps to rescue the global economy but it was left to individual governments to tailor their response to their particular circumstances and troubled industries.
RBI on Saturday, 15 November 2008, announced measures to improve money market liquidity and help exporters. The measures include extension of a special repurchase facility to provide liquidity for mutual funds and non-banking finance companies till March 2009, increase in the limit on export credit refinance available to banks, allowing housing finance companies to raise funds through short-term overseas borrowings, reduction in provisioning on standard assets of banks to a uniform level of 0.4%, and reduction in risk weights for banks on commercial real estate and on unrated claims on corporates.
The central bank also said it would consider proposals from local firms to buy back foreign currency convertible bonds early.
Foreign funds have stepped up selling on the bourses. As per provisional data, foreign institutional investors (FIIs) dumped stocks worth a net Rs 811.52 crore on Friday, 14 November 2008. On Wednesday, 12 November 2008, FIIs had pressed sales worth a net Rs 615.10 crore, much higher than Rs 266.50 crore on the previous trading session. The market was closed on Thursday, 13 November 2008, for a public holiday.
Political uncertainty ahead of state elections, uncertainty about a US Treasury plan to forgo buying bad mortgage-related investments to buy stakes in US lenders and caution ahead of a meeting of G20 political leaders, pulled the market sharply lower in the past three trading sessions. The BSE Sensex has declined 1150.74 points or 10.92% to 9,385.42 on Friday, 14 November 2008, from 10536.16 on 10 November 2008.
Stocks were mixed in Asia. The Nikkei average rose 1.2% in thin trade as some investors rushed in to buy following an initial sell-off after data showed Japan's economy was in recession. Key benchmark indices in Hong Kong, South Koera, Singapore, Taiwan and China were up by between 0.23% to 1.3%.
The G20 political leaders agreed Saturday, 15 November 2008, to a host of fiscal and monetary steps to rescue the global economy but it was left to individual governments to tailor their response to their particular circumstances and troubled industries.
Monday, November 10, 2008
Pre Market Report 10/11/2008
Key benchmark indices are likely to extend Friday's, 7 November 2008 gains tracking firm Asian indices boosted by China's nearly $600 billion spending plan to spur the economy. US markets had also rallied on Friday, 7 November 2008. SGX Nifty futures for November 2008 delivery added 42 points in Singapore.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Friday, November 7, 2008
Pre Market Report 07/11/2008
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.
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.
Wednesday, November 5, 2008
Pre Market Report 05/11/2008
The market may extend the solid recent rebound that followed a steep fall, tracking rally in Asian stocks. Expectations of cut in interest rates by state-run banks that would result in lower borrowing costs for the corporates would support the market. The sentiment will also be firm following a statement by the Commerce and Industry Minister Kamal Nath after trading hours on Tuesday, 3 November 2008, that the government will further ease foreign investment rules, including those relating to defence production.
Asian stocks surged as investors welcomed the impending end to the uncertainty around the US presidential election, while resource firms rose on the back of an overnight surge in oil prices. Democrat Barack Obama moved to the brink of capturing the presidency on Tuesday, 4 November 2008, scoring a breakthrough win in Ohio that left him in easy reach of becoming the first black elected to the White House. Votes for the US presidential election were being counted through the Asian morning session.
US stocks had their biggest Election Day rally ever on Tuesday as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, while global credit markets showed more signs of a thaw. The Dow Jones Industrial Average jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite Index surged 53.79 points or 3.12%.
Meanwhile, a string of state-run banks confirmed on Tuesday, that they were considering rate cuts following last week's move by the Reserve Bank of India to slash reserve ratio and cut short-term rates and the government assurance of favourable policy measures.
The market has staged a solid rebound after a recent steep fall. From a low of 8,509.56 on 27 October 2008, the BSE Sensex rose 2,121.56 points or 24.93% in five trading sessions to 10,631.12 on Tuesday, 4 November 2008.
Asian stocks surged as investors welcomed the impending end to the uncertainty around the US presidential election, while resource firms rose on the back of an overnight surge in oil prices. Democrat Barack Obama moved to the brink of capturing the presidency on Tuesday, 4 November 2008, scoring a breakthrough win in Ohio that left him in easy reach of becoming the first black elected to the White House. Votes for the US presidential election were being counted through the Asian morning session.
US stocks had their biggest Election Day rally ever on Tuesday as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, while global credit markets showed more signs of a thaw. The Dow Jones Industrial Average jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite Index surged 53.79 points or 3.12%.
Meanwhile, a string of state-run banks confirmed on Tuesday, that they were considering rate cuts following last week's move by the Reserve Bank of India to slash reserve ratio and cut short-term rates and the government assurance of favourable policy measures.
The market has staged a solid rebound after a recent steep fall. From a low of 8,509.56 on 27 October 2008, the BSE Sensex rose 2,121.56 points or 24.93% in five trading sessions to 10,631.12 on Tuesday, 4 November 2008.
Tuesday, November 4, 2008
Pre Market Report 04/11/2008
Subdued-to-weak trend in Asian stocks may trigger profit taking on the domestic bourses after a recent steep rebound from a sharp fall. But data showing foreign funds buying for the second day in a row on Monday, 3 November 2008, and signals of a soft interest rate regime may cap the downside.
Japan's Nikkei index rose nearly 4% on Tuesday, 4 November 2008, as exporters gained on the yen's recent weakness, but other markets were down after reports pointed to a shrivelling US economy ahead of the US presidential election. Key benchmark indices in Hong Kong, China, Singapore and Taiwan were down by between 0.58% to 1.98%.
Wall Street ended the calmest session in recent memory with a narrowly mixed performance Monday, 3 November 2008, as investors largely looked past a weak reading on the manufacturing sector and focused on the election. The Dow Jones industrial average fell 5.18 points or 0.06%, to 9,319.83. The Standard & Poor's 500 index fell 2.45 points or 0.25%, to 966.30, while the Nasdaq composite index rose 5.38, or 0.31%, to 1,726.33.
Back home, as per provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 363.55 crore in India on Monday. They had bought shares worth a net Rs 1183.20 crore on Friday, 31 October 2008. FIIs have sold heavily in India and other emerging markets this year to shore up resources to beat the global liquidity crunch. The outflow reached Rs 50955.80 crore in calendar 2008 so far (till 31 October 2008).
Marketmen will watch the outcome of the meeting of Finance Minister P Chidambaram with the chiefs of state-owned banks. The meeting may set the tone for the state-run banks to cut lending and deposit rates, after the Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis. The RBI decision boosted the BSE Sensex 5.62% on Monday, 3 November 2008. Lower rates boosts stocks as they help lift corporate bottomline by way of lower borrowing costs.
The market has staged a solid rebound after a recent steep fall. From a low of 8,509.56 on 27 October 2008, the BSE Sensex jumped 1,828.12 points or 21.48% in four trading sessions to 10,337.68 on Monday, 3 November 2008.
Japan's Nikkei index rose nearly 4% on Tuesday, 4 November 2008, as exporters gained on the yen's recent weakness, but other markets were down after reports pointed to a shrivelling US economy ahead of the US presidential election. Key benchmark indices in Hong Kong, China, Singapore and Taiwan were down by between 0.58% to 1.98%.
Wall Street ended the calmest session in recent memory with a narrowly mixed performance Monday, 3 November 2008, as investors largely looked past a weak reading on the manufacturing sector and focused on the election. The Dow Jones industrial average fell 5.18 points or 0.06%, to 9,319.83. The Standard & Poor's 500 index fell 2.45 points or 0.25%, to 966.30, while the Nasdaq composite index rose 5.38, or 0.31%, to 1,726.33.
Back home, as per provisional data released by the stock exchanges, foreign funds bought shares worth a net Rs 363.55 crore in India on Monday. They had bought shares worth a net Rs 1183.20 crore on Friday, 31 October 2008. FIIs have sold heavily in India and other emerging markets this year to shore up resources to beat the global liquidity crunch. The outflow reached Rs 50955.80 crore in calendar 2008 so far (till 31 October 2008).
Marketmen will watch the outcome of the meeting of Finance Minister P Chidambaram with the chiefs of state-owned banks. The meeting may set the tone for the state-run banks to cut lending and deposit rates, after the Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate viz. the repo rate to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis. The RBI decision boosted the BSE Sensex 5.62% on Monday, 3 November 2008. Lower rates boosts stocks as they help lift corporate bottomline by way of lower borrowing costs.
The market has staged a solid rebound after a recent steep fall. From a low of 8,509.56 on 27 October 2008, the BSE Sensex jumped 1,828.12 points or 21.48% in four trading sessions to 10,337.68 on Monday, 3 November 2008.
Monday, November 3, 2008
Market may extend gains on rate cut
he market may extend Friday (31 October 2008)'s solid gains after a surprise rate cut by the central bank over the weekend and on firm Asian stocks. Heavy buying buy foreign funds and the stock market regulator's decision to increase tenure for lending and borrowing of stocks from seven days to 30, may also aid an upmove.
Lower rates boosts stocks as they boost corporate bottomlines. The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate for the second time in as many weeks to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.
The extension of the tenure for lending and borrowing of stocks is aimed the domestic stock lending and borrowing (SLB) mechanism robust and increase liquidity in the secondary markets. Short selling refers to selling of shares one does not own and a SLB mechanism facilitates this activity.
Meanwhile, in contrast to heavy selling for the last few months, foreign funds made substantial purchases on Friday. As per provisional data released by the stock exchanges, foreign institutional investors (FIIs) bought shares worth a net Rs 1237.21 crore. FII outflow in October 2008 totaled Rs 15,347.30 crore (till 29 October 2008). FII outflow reached Rs 52,139 crore in calendar 2008, so far, till 29 October 2008
Asian stocks edged up for a fifth straight day on Monday, 3 November 2008, on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy. Asian stocks edged up for a fifth straight day on Monday on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy.
Back home, the BSE Sensex jumped 743.55 points or 8.22%, boosted by a steep rate cut by the US Federal Reserve, decline in inflation for the fifth successive week and market buzz the government was considering more measures to pump in liquidity in the financial system
Lower rates boosts stocks as they boost corporate bottomlines. The Reserve Bank of India (RBI) on Saturday, 1 November 2008, unexpectedly cut its main short-term lending rate for the second time in as many weeks to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.
The extension of the tenure for lending and borrowing of stocks is aimed the domestic stock lending and borrowing (SLB) mechanism robust and increase liquidity in the secondary markets. Short selling refers to selling of shares one does not own and a SLB mechanism facilitates this activity.
Meanwhile, in contrast to heavy selling for the last few months, foreign funds made substantial purchases on Friday. As per provisional data released by the stock exchanges, foreign institutional investors (FIIs) bought shares worth a net Rs 1237.21 crore. FII outflow in October 2008 totaled Rs 15,347.30 crore (till 29 October 2008). FII outflow reached Rs 52,139 crore in calendar 2008, so far, till 29 October 2008
Asian stocks edged up for a fifth straight day on Monday, 3 November 2008, on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy. Asian stocks edged up for a fifth straight day on Monday on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy.
Back home, the BSE Sensex jumped 743.55 points or 8.22%, boosted by a steep rate cut by the US Federal Reserve, decline in inflation for the fifth successive week and market buzz the government was considering more measures to pump in liquidity in the financial system
Wednesday, October 29, 2008
Pre Market Report 29/10/2008
Key benchmark indices are likely to open firm today, 29 October 2008, mirroring strong global equities buoyed by hopes of interest rate cut by the US Federal Reserve in its meeting scheduled later during the day. However volatility is likely to be at fore as derivative contracts for October 2008 series expire today, 29 October 2008.
As per reports, marketwide rollover of positions was 51% while that of Nifty stood at 52% from October 2008 series to November 2007, by Tuesday, 28 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, due to ballooning interest cost. Aggregate results of 1072 companies showed a 6.8% rise in net profit on 29.10% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 30% in Q2 September 2008 over Q2 September 2007.
Cairn India, Mahindra & Mahindra, ONGC, National Aluminium Company and Suzlon Energy will declare their September 2008 quarterly results today, 29 October 2008.
US markets rallied on Tuesday, 28 October 2008 on bargain-hunting with expectations of a interest rate cut by the US Federal Reserve in its meeting scheduled later during the day propelled the rally. The Dow Jones surged 889.35 points, or 10.88%, to 9,065.12. It was the second-biggest point gain on record and the seventh-largest percentage gain. The S&P 500 index advanced 91.59 points, or 10.79%, to 940.51, and the Nasdaq Composite index added 143.57 points, or 9.53%, to 1,649.47.
Most Asian markets were trading higher today, 29 October 2008, following an overnight rally on Wall Street as hopes mounted for further interest rate cuts to shore up the global economy. Hong Kong's Hang Seng gained 2.76% or 348.12 points at 12,944.41. Japan's Nikkei rose 6.39% or 487.42 points at 8,109.34, Singapore's Straits Times surged 2.28% or 38.01 points at 1,704.50, South Korea's Seoul Composite advanced 3.30% or 32.98 points at 1,032.14, Taiwan's Taiwan Weighted was up 2.43% or 106.99 points at 4,506.96. However, China's Shanghai Composite was down 1.13% or 20.06 points at 1,751.7.
Firm global markets and relaxation of creeping acquisition norms for promoters boosted the battered bourses on the special one-hour Muhurat trading session for Samvat 2065 on 28 October 2008. The BSE 30-share Sensex jumped 498.52 points, or 5.85%, to 9,008.08 and the S&P CNX Nifty was up 167.70 points, or 6.64%, to 2,691.90, recording its biggest Muhurat day gain in 18 years.
Foreign institutional investors (FIIs) were net sellers worth Rs 69.18 crore while mutual funds bought shares worth Rs 24.78 crore on Tuesday, 28 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery was up $2.32 at $65.05 a barrel today, 29 October 2008 after US stock indices rallied, helping draw some investors back into beaten-down risk assets.
As per reports, marketwide rollover of positions was 51% while that of Nifty stood at 52% from October 2008 series to November 2007, by Tuesday, 28 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, due to ballooning interest cost. Aggregate results of 1072 companies showed a 6.8% rise in net profit on 29.10% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 30% in Q2 September 2008 over Q2 September 2007.
Cairn India, Mahindra & Mahindra, ONGC, National Aluminium Company and Suzlon Energy will declare their September 2008 quarterly results today, 29 October 2008.
US markets rallied on Tuesday, 28 October 2008 on bargain-hunting with expectations of a interest rate cut by the US Federal Reserve in its meeting scheduled later during the day propelled the rally. The Dow Jones surged 889.35 points, or 10.88%, to 9,065.12. It was the second-biggest point gain on record and the seventh-largest percentage gain. The S&P 500 index advanced 91.59 points, or 10.79%, to 940.51, and the Nasdaq Composite index added 143.57 points, or 9.53%, to 1,649.47.
Most Asian markets were trading higher today, 29 October 2008, following an overnight rally on Wall Street as hopes mounted for further interest rate cuts to shore up the global economy. Hong Kong's Hang Seng gained 2.76% or 348.12 points at 12,944.41. Japan's Nikkei rose 6.39% or 487.42 points at 8,109.34, Singapore's Straits Times surged 2.28% or 38.01 points at 1,704.50, South Korea's Seoul Composite advanced 3.30% or 32.98 points at 1,032.14, Taiwan's Taiwan Weighted was up 2.43% or 106.99 points at 4,506.96. However, China's Shanghai Composite was down 1.13% or 20.06 points at 1,751.7.
Firm global markets and relaxation of creeping acquisition norms for promoters boosted the battered bourses on the special one-hour Muhurat trading session for Samvat 2065 on 28 October 2008. The BSE 30-share Sensex jumped 498.52 points, or 5.85%, to 9,008.08 and the S&P CNX Nifty was up 167.70 points, or 6.64%, to 2,691.90, recording its biggest Muhurat day gain in 18 years.
Foreign institutional investors (FIIs) were net sellers worth Rs 69.18 crore while mutual funds bought shares worth Rs 24.78 crore on Tuesday, 28 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery was up $2.32 at $65.05 a barrel today, 29 October 2008 after US stock indices rallied, helping draw some investors back into beaten-down risk assets.
Monday, October 27, 2008
Pre Market Report 27/10/2008
Key benchmark indices are likely to open lower mirroring weak global cues. Global stocks tumbled to a new five-year low as investors withdrew from equity markets on worries that global economic slowdown may hurt corporate profitability.
Volatility is likely to remain high as derivative contracts for October 2008 series expire on Wednesday, 29 October 2008. As per reports, marketwide rollover of positions was 37% while that of Nifty stood at 45% from October 2008 series to November 2007, by Friday, 24 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, partly due to a surge in interest cost. Aggregate results of 875 companies showed a 6.2% rise in net profit on 28.5% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 35.6% in Q2 September 2008 over Q2 September 2007.
In the midst of a credit turmoil gripping economies across the world, the markets will keenly watch the second quarter earnings of the country's two largest lenders State Bank of India (SBI) and ICICI Bank due today, 27 October 2008. The focus is on ICICI Bank for its exposure to some of the crisis-ridden institutions in the US including Lehman Brothers Holdings Inc. SBI's results will also be watched, as being the largest lender of the country it would serve a benchmark indicator for the entire sector. If the repeated assurances from the management of the two banks that they were on a sound footing and the impact of global crisis was negligible come true, it could turn out to be a major trigger for the beaten-down domestic bourses, which are keenly waiting for any positive cues.
While governments and central banks across the globe are expected to take further dramatic action to prop up the global financial system this week, there is concern it will not be enough to prevent companies from slashing production and jobs as sales get hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets. Reports indicate the US Federal Reserve is widely expected to announce a 50 basis-point cut in overnight rates on Wednesday, 29 October 2008 that would take them to 1%, the lowest level since June 2004, with some expecting an even deeper reduction to 0.75%.
Most Asian markets were trading lower today, 27 October 2008. China's Shanghai Composite was down 2.84% or 52.22 points at 1,787.39, Hong Kong's Hang Seng plunged 1.83% or 231.46 points at 12,386.92, South Korea's Seoul Composite slipped 1.49% or 13.95 points at 924.8, and Taiwan's Taiwan Weighted tumbled 5.24% or 239.78 points at 4,339.84. However, Japan's Nikkei was up 0.40% or 30.42 points at 7,679.50.
US markets declined in volatile trade on Friday, 24 October 2008 as fears of a full-blown global recession intensified and investors dumped risky assets. Dow plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered severe setback on Friday 24 October 2008 plunging to three year lows mirroring weak global equities on worries about a sharp global economic slowdown and disappointment from the second quarter monetary policy review of the Reserve Bank of India. The BSE 30-share Sensex plunged 1070.63 points or 10.96% to 8,701.07, recording its biggest fall in percentage terms since May 2004 and the S&P CNX Nifty was down 359.50 points or 12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers worth Rs 1431.56 crore while mutual funds bought shares worth Rs 514.26 crore on Friday, 24 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery fell 22 cents to $63.93 a barrel today, 27 October 2008 after touching a 17-month low of $63.67 as an emergency production cut by OPEC was shrugged off by traders anxious about the onset of a deep global recession
Volatility is likely to remain high as derivative contracts for October 2008 series expire on Wednesday, 29 October 2008. As per reports, marketwide rollover of positions was 37% while that of Nifty stood at 45% from October 2008 series to November 2007, by Friday, 24 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, partly due to a surge in interest cost. Aggregate results of 875 companies showed a 6.2% rise in net profit on 28.5% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 35.6% in Q2 September 2008 over Q2 September 2007.
In the midst of a credit turmoil gripping economies across the world, the markets will keenly watch the second quarter earnings of the country's two largest lenders State Bank of India (SBI) and ICICI Bank due today, 27 October 2008. The focus is on ICICI Bank for its exposure to some of the crisis-ridden institutions in the US including Lehman Brothers Holdings Inc. SBI's results will also be watched, as being the largest lender of the country it would serve a benchmark indicator for the entire sector. If the repeated assurances from the management of the two banks that they were on a sound footing and the impact of global crisis was negligible come true, it could turn out to be a major trigger for the beaten-down domestic bourses, which are keenly waiting for any positive cues.
While governments and central banks across the globe are expected to take further dramatic action to prop up the global financial system this week, there is concern it will not be enough to prevent companies from slashing production and jobs as sales get hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets. Reports indicate the US Federal Reserve is widely expected to announce a 50 basis-point cut in overnight rates on Wednesday, 29 October 2008 that would take them to 1%, the lowest level since June 2004, with some expecting an even deeper reduction to 0.75%.
Most Asian markets were trading lower today, 27 October 2008. China's Shanghai Composite was down 2.84% or 52.22 points at 1,787.39, Hong Kong's Hang Seng plunged 1.83% or 231.46 points at 12,386.92, South Korea's Seoul Composite slipped 1.49% or 13.95 points at 924.8, and Taiwan's Taiwan Weighted tumbled 5.24% or 239.78 points at 4,339.84. However, Japan's Nikkei was up 0.40% or 30.42 points at 7,679.50.
US markets declined in volatile trade on Friday, 24 October 2008 as fears of a full-blown global recession intensified and investors dumped risky assets. Dow plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered severe setback on Friday 24 October 2008 plunging to three year lows mirroring weak global equities on worries about a sharp global economic slowdown and disappointment from the second quarter monetary policy review of the Reserve Bank of India. The BSE 30-share Sensex plunged 1070.63 points or 10.96% to 8,701.07, recording its biggest fall in percentage terms since May 2004 and the S&P CNX Nifty was down 359.50 points or 12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers worth Rs 1431.56 crore while mutual funds bought shares worth Rs 514.26 crore on Friday, 24 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery fell 22 cents to $63.93 a barrel today, 27 October 2008 after touching a 17-month low of $63.67 as an emergency production cut by OPEC was shrugged off by traders anxious about the onset of a deep global recession
Wednesday, October 22, 2008
Pre Market Report 22/10/2008
Weak Asian stocks may pull the market lower after last two days' rebound from an earlier steep fall caused by global recession worries. Cautious outlook by IT firm Wipro at the time of announcing Q2 results today and sustained selling by foreign funds may continue to weigh on the sentiments. But short covering following the stock market regulator Securities & Exchange Board of India's warnings to foreign funds against overseas lending of shares and signs of a soft credit policy may cap the downside.
At the time of announcement of Q2 September 2008 results just a while back, Wipro said the global economic environment has deteriorated significantly over the past couple of months, and our outlook is cautious in the near term given the extent of strain on the global economy. Wipro's net profit rose 19% to Rs 978 crore on 36% growth in revenue to Rs 6507 crore in Q2 September 2008 over Q2 September 2007.
Asian stocks fell as poor US corporate results and falling commodity prices fanned worries of a protracted global economic slowdown. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were down by between 0.9% to 3%.
Overnight, US stocks fell on an array of disappointing corporate results from companies such as industrial machine maker Caterpillar Inc and the largest publicly traded copper producer Freeport-McMoRan Copper & Gold Inc. The Standard & Poor's 500 index dropped 3.1%.
The market regulator Sebi, on Monday, 20 October 2008, said it has disapproved overseas lending and borrowing activity of foreign funds and the consequent selling pressure in the cash market in India. Sebi said this after data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Signs of a soft interest rate regime may support stocks as lower interest rates means lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Oil fell over $1 to around $71 a barrel on Wednesday, 22 October 2008, extending a 4% slide in the previous session, on mounting worries that output cuts by the oil cartel Organisation of Petroleum Exporting Countries (Opec) will not be enough to offset slackening energy demand in leading consumers.
The Sensex jumped 708.04 points or 7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October 2008, from its close of 9,975.35 on 17 October 2008.
At the time of announcement of Q2 September 2008 results just a while back, Wipro said the global economic environment has deteriorated significantly over the past couple of months, and our outlook is cautious in the near term given the extent of strain on the global economy. Wipro's net profit rose 19% to Rs 978 crore on 36% growth in revenue to Rs 6507 crore in Q2 September 2008 over Q2 September 2007.
Asian stocks fell as poor US corporate results and falling commodity prices fanned worries of a protracted global economic slowdown. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were down by between 0.9% to 3%.
Overnight, US stocks fell on an array of disappointing corporate results from companies such as industrial machine maker Caterpillar Inc and the largest publicly traded copper producer Freeport-McMoRan Copper & Gold Inc. The Standard & Poor's 500 index dropped 3.1%.
The market regulator Sebi, on Monday, 20 October 2008, said it has disapproved overseas lending and borrowing activity of foreign funds and the consequent selling pressure in the cash market in India. Sebi said this after data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Signs of a soft interest rate regime may support stocks as lower interest rates means lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Oil fell over $1 to around $71 a barrel on Wednesday, 22 October 2008, extending a 4% slide in the previous session, on mounting worries that output cuts by the oil cartel Organisation of Petroleum Exporting Countries (Opec) will not be enough to offset slackening energy demand in leading consumers.
The Sensex jumped 708.04 points or 7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October 2008, from its close of 9,975.35 on 17 October 2008.
Tuesday, October 21, 2008
Pre Market Report 21/10/2008
The market may extend gains Monday's (20 October 2008) gains on higher Asian markets and on short covering following the stock market regulator Securities & Exchange Board of India (Sebi)'s warning to foreign funds that overseas lending and borrowing of Indian securities could result in stern measures. However, the gains may be capped as investors await key Q2 September 2008 results and management guidance on future outlook and on sustained selling by foreign funds.
Foreign funds have pulled out from India and other emerging markets to shore up resources to beat the global liquidity crunch. They sold shares worth a net Rs 47528.80 crore in 2008, till 20 October 2008.
As per provisional data, foreign funds sold shares worth a net Rs 816.79 crore on Monday, 20 October 2008. Domestic funds bought shares worth a net Rs 216.43 crore.
Rate cut by the central bank will provide support to stocks. The Sensex rose 2.48% on Monday boosted by the announcement. Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Asian stocks rose today, 21 October 2008, led by producers of consumer goods and commodities, on optimism the US and Japan will expand efforts to stimulate the economy. US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
Foreign funds have pulled out from India and other emerging markets to shore up resources to beat the global liquidity crunch. They sold shares worth a net Rs 47528.80 crore in 2008, till 20 October 2008.
As per provisional data, foreign funds sold shares worth a net Rs 816.79 crore on Monday, 20 October 2008. Domestic funds bought shares worth a net Rs 216.43 crore.
Rate cut by the central bank will provide support to stocks. The Sensex rose 2.48% on Monday boosted by the announcement. Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Asian stocks rose today, 21 October 2008, led by producers of consumer goods and commodities, on optimism the US and Japan will expand efforts to stimulate the economy. US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
Monday, October 20, 2008
Pre Market Report 20/10/2008
Key benchmark indices are likely to remain range-bound on mixed global cues. Asian markets were trading mixed today, 20 October 2008 while US markets ended lower on Friday, 17 October 2008. Volatility may remain high ahead of the derivatives expiry for October 2008 series.
Meanwhile, US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.
Asian markets were trading mixed today, 20 October 2008. China's Shanghai Composite slipped 0.73% or 14 points at 1,916.65, South Korea's Seoul Composite declined 0.92% or 10.91 points at 1,169.76, Taiwan's Taiwan Weighted fell 0.45% or 21.60 points at 4,817.04. However, Hong Kong's Hang Seng rose 1.90% or 277.01 points at 14,831.22, Japan's Nikkei advanced 0.53% or 45.88 points at 8,739.70 and Singapore's Straits Times gained 1.17% or 21.89 points at 1,900.40.
US stocks fell on Friday, 17 October 2008 on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction. The Dow Jones industrial average fell 127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17 October 2008 on global recession worries, with the BSE Sensex falling below the psychological 10,000 mark for the first time in more than two years. The BSE 30-share Sensex lost 606.14 points or 5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35, on that day.
Foreign institutional investors (FIIs) were net sellers worth Rs 915.54 crore while mutual funds bought shares worth Rs 712.77 crore on Friday, 17 October 2008, according to provisional data on NSE.
Meanwhile, US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.
Asian markets were trading mixed today, 20 October 2008. China's Shanghai Composite slipped 0.73% or 14 points at 1,916.65, South Korea's Seoul Composite declined 0.92% or 10.91 points at 1,169.76, Taiwan's Taiwan Weighted fell 0.45% or 21.60 points at 4,817.04. However, Hong Kong's Hang Seng rose 1.90% or 277.01 points at 14,831.22, Japan's Nikkei advanced 0.53% or 45.88 points at 8,739.70 and Singapore's Straits Times gained 1.17% or 21.89 points at 1,900.40.
US stocks fell on Friday, 17 October 2008 on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction. The Dow Jones industrial average fell 127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17 October 2008 on global recession worries, with the BSE Sensex falling below the psychological 10,000 mark for the first time in more than two years. The BSE 30-share Sensex lost 606.14 points or 5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35, on that day.
Foreign institutional investors (FIIs) were net sellers worth Rs 915.54 crore while mutual funds bought shares worth Rs 712.77 crore on Friday, 17 October 2008, according to provisional data on NSE.
Thursday, October 16, 2008
Pre Market Report 16/10/2008
Key benchmark indices are likely to open weak mirroring global peers which witnessed a huge sell-off on renewed worries over a prolonged global economic recession, thereby ignoring the Reserve Bank of India's 1% cash reserve requirement cut on late evening Wednesday, 15 October 2008 in a bid to boost liquidity. The SGX October 2008 Nifty futures were down 227.5 points.
Back home, the Reserve Bank of India (RBI) slashed its cash reserve requirement (CRR) for banks by 100 basis points to 6.5% with effect from 11 October 2008, whichwill release Rs 40,000 crore into the banking system to boost liquidity. CRR is the amount that banks park with the central bank. Among the other measures announced were the release of Rs 25000 crore to banks for a farm loan waiver scheme, doubling the cap on foreign investment in corporate debt to $6 billion from $3 billion as authorities sought to get money flowing through squeezed markets.
On 10 October 2008, RBI had cut CRR, by 150 basis points to 7.5% to infuse liquidity into the system. This included a 50 bps CRR cut on 6 October 2008.The cut injected liquidity to the tune of Rs 60,000 crore into the system.
Among frontline companies, HDFC Bank will declare their September quarterly results today, 16 October 2008.
US stocks plunged the most on Wednesday, 15 October 2008, since the crash of 1987 after the Federal Reserve Chairman Ben Bernanke said economic activity weakened across the United States in September 2008 as businesses rethought capital investments, and consumers curtailed spending. Fed Chairman acknowledged the US economy faced a significant threat and global efforts to unlock credit markets would not prevent recession.
The Dow Jones Industrial Average slumped 733.08 or 7.9% to 8,577.91, its second-biggest point drop ever. The Nasdaq Composite Index lost 150.68, or 8.5%, to 1,628.33 and the Standard & Poor's 500 Index sank 90.17 points, or 9%, to 907.84.
Asian markets declined sharply today, 16 October 2008 on global recession concerns. China's Shanghai Composite slipped 3.62% or 72.19 points at 1,922.47, Hong Kong's Hang Seng tumbled 5.77% or 923.24 points at 15,075.06, Japan's Nikkei plunged 9.55% or 911.91 points at 8,635.56, Singapore's Straits Times dropped 5.48% or112.78 points at 1,946.61, South Korea's Seoul Composite fell 6.81% or 91.26 points at 1,249.02 and Taiwan's Taiwan Weighted lost 3.11% or 163.30 points at 5,082.96
Back home, the BSE 30-share Sensex ended 674.28 points or 5.87% lower at 10,809.12 and the S&P CNX Nifty ended down 180.25 points or 5.12% to 3,338.40 on Wednesday, 15 October 2008 on worries over liquidity conditions in the financial system and weak global markets.
Foreign institutional investors (FIIs) were net sellers worth Rs 1030.79 crore while mutual funds bought shares worth Rs 669.96 crore on Wednesday, 15 October 2008, according to provisional data on NSE.
Back home, the Reserve Bank of India (RBI) slashed its cash reserve requirement (CRR) for banks by 100 basis points to 6.5% with effect from 11 October 2008, whichwill release Rs 40,000 crore into the banking system to boost liquidity. CRR is the amount that banks park with the central bank. Among the other measures announced were the release of Rs 25000 crore to banks for a farm loan waiver scheme, doubling the cap on foreign investment in corporate debt to $6 billion from $3 billion as authorities sought to get money flowing through squeezed markets.
On 10 October 2008, RBI had cut CRR, by 150 basis points to 7.5% to infuse liquidity into the system. This included a 50 bps CRR cut on 6 October 2008.The cut injected liquidity to the tune of Rs 60,000 crore into the system.
Among frontline companies, HDFC Bank will declare their September quarterly results today, 16 October 2008.
US stocks plunged the most on Wednesday, 15 October 2008, since the crash of 1987 after the Federal Reserve Chairman Ben Bernanke said economic activity weakened across the United States in September 2008 as businesses rethought capital investments, and consumers curtailed spending. Fed Chairman acknowledged the US economy faced a significant threat and global efforts to unlock credit markets would not prevent recession.
The Dow Jones Industrial Average slumped 733.08 or 7.9% to 8,577.91, its second-biggest point drop ever. The Nasdaq Composite Index lost 150.68, or 8.5%, to 1,628.33 and the Standard & Poor's 500 Index sank 90.17 points, or 9%, to 907.84.
Asian markets declined sharply today, 16 October 2008 on global recession concerns. China's Shanghai Composite slipped 3.62% or 72.19 points at 1,922.47, Hong Kong's Hang Seng tumbled 5.77% or 923.24 points at 15,075.06, Japan's Nikkei plunged 9.55% or 911.91 points at 8,635.56, Singapore's Straits Times dropped 5.48% or112.78 points at 1,946.61, South Korea's Seoul Composite fell 6.81% or 91.26 points at 1,249.02 and Taiwan's Taiwan Weighted lost 3.11% or 163.30 points at 5,082.96
Back home, the BSE 30-share Sensex ended 674.28 points or 5.87% lower at 10,809.12 and the S&P CNX Nifty ended down 180.25 points or 5.12% to 3,338.40 on Wednesday, 15 October 2008 on worries over liquidity conditions in the financial system and weak global markets.
Foreign institutional investors (FIIs) were net sellers worth Rs 1030.79 crore while mutual funds bought shares worth Rs 669.96 crore on Wednesday, 15 October 2008, according to provisional data on NSE.
Wednesday, October 15, 2008
Pre Market Report 15/10/2008
Key benchmark indices are likely to see lower start today, 15 October 2008 tracking weak global cues as worries about the slowdown in the global economy resurfaced.
Among frontline companies, Larsen & Toubro and HCL Technologies will declare their September quarterly results today, 15 October 2008.
Asian markets were trading lower today, 15 October 2008 on concern the rescue would come at a huge economic cost and do little to repair the damage already done by a 14-month credit crunch. China's Shanghai Composite was down 1.29% or 26.03 points at 1,991.31, Hong Kong's Hang Seng plunged 2.41% or 405.05 points at 16,427.83, Japan's Nikkei fell 1.44% or 136.35 points at 9,311.22, Singapore's Straits Times tumbled 2.12% or 45.11 points at 2,083.20, South Korea's Seoul Composite declined 2.52% or 34.5 points at 1,333.19 and Taiwan's Taiwan Weighted slipped 1.58% or 83.48 points at 5,208.08.
US markets ended lower on Tuesday, 14 October 2008 as the enthusiasm about the government's plan to buy stakes in the nation's largest financial institutions died down and worries about earnings crept in. The Dow Jones slipped 76.62 points, or 0.82%, to 9,310.99. The S&P 500 index was down 5.34 points, or 0.53%, to 998.01 and the Nasdaq plunged 65.24 points, or 3.54%, to 1,779.01.
The U.S. saw its budget deficit balloon to a record for the 2008 fiscal year. As per the Treasury Department, the shortfall for the year ending September 2008 hit $455 billion. The deficit represented 3.2% of America's gross domestic product, up from last year's 1.2%. The largest-ever percentage of deficit to GDP occurred in 2004, when it hit 3.6%.
Back home, the key benchmark indices logged decent gains boosted by the Reserve Bank of India's announcement to infuse more liquidity coupled with strong global markets. The BSE 30-share Sensex rose 174.31 points or 1.54% to 11,483.40 and the S&P CNX Nifty rose 27.95 points or 0.8% to 3,518.65, on that day.
Foreign institutional investors (FIIs) were net equity buyers worth Rs 898.25 crore while mutual funds sold shares worth Rs 252.37 crore on Tuesday, 14 October 2008, according to provisional data on NSE. FIIs were net buyers of Rs 1,747.68 crore in the futures & options segment on that day.
U.S crude fell 53 cents to $78.10 a barrel, while London Brent crude slipped 23 cents to $74.30 today, 15 October 2008 on fears as a global recession just about outweighed optimism for an economic recovery spurred by bank rescue schemes.
Among frontline companies, Larsen & Toubro and HCL Technologies will declare their September quarterly results today, 15 October 2008.
Asian markets were trading lower today, 15 October 2008 on concern the rescue would come at a huge economic cost and do little to repair the damage already done by a 14-month credit crunch. China's Shanghai Composite was down 1.29% or 26.03 points at 1,991.31, Hong Kong's Hang Seng plunged 2.41% or 405.05 points at 16,427.83, Japan's Nikkei fell 1.44% or 136.35 points at 9,311.22, Singapore's Straits Times tumbled 2.12% or 45.11 points at 2,083.20, South Korea's Seoul Composite declined 2.52% or 34.5 points at 1,333.19 and Taiwan's Taiwan Weighted slipped 1.58% or 83.48 points at 5,208.08.
US markets ended lower on Tuesday, 14 October 2008 as the enthusiasm about the government's plan to buy stakes in the nation's largest financial institutions died down and worries about earnings crept in. The Dow Jones slipped 76.62 points, or 0.82%, to 9,310.99. The S&P 500 index was down 5.34 points, or 0.53%, to 998.01 and the Nasdaq plunged 65.24 points, or 3.54%, to 1,779.01.
The U.S. saw its budget deficit balloon to a record for the 2008 fiscal year. As per the Treasury Department, the shortfall for the year ending September 2008 hit $455 billion. The deficit represented 3.2% of America's gross domestic product, up from last year's 1.2%. The largest-ever percentage of deficit to GDP occurred in 2004, when it hit 3.6%.
Back home, the key benchmark indices logged decent gains boosted by the Reserve Bank of India's announcement to infuse more liquidity coupled with strong global markets. The BSE 30-share Sensex rose 174.31 points or 1.54% to 11,483.40 and the S&P CNX Nifty rose 27.95 points or 0.8% to 3,518.65, on that day.
Foreign institutional investors (FIIs) were net equity buyers worth Rs 898.25 crore while mutual funds sold shares worth Rs 252.37 crore on Tuesday, 14 October 2008, according to provisional data on NSE. FIIs were net buyers of Rs 1,747.68 crore in the futures & options segment on that day.
U.S crude fell 53 cents to $78.10 a barrel, while London Brent crude slipped 23 cents to $74.30 today, 15 October 2008 on fears as a global recession just about outweighed optimism for an economic recovery spurred by bank rescue schemes.
Friday, October 10, 2008
Pre market 10 Oct 2008
The market is set to tumble today, 10 October 2008, on worries about a global recession despite worldwide central bank measures to stave off a crisis. Bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety with Asian stocks tumbling today, following overnight setback in US stocks. Infosys Technologies, which reports its quarterly earnings before trading begins, will be in focus.
Japan's Nikkei 225 average was down 10.6% at 974.12. In other Asian shares, key benchmark indices in Hong Kong, South Korea, China and Singapore were down 5% to 7%.
Overnight, US stocks slumped more than 7% on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill.
At the centre of a financial crisis now almost a month old, credit markets remained in deep distress. With banks desperate to protect capital, the interbank cost of borrowing dollars rocketed. Three-month interbank rates for dollar loans hit their highest level of the year.
The cost of protection against defaults in Asia's sovereign and corporate debt also soared to record highs on Friday, 10 October 2008, on fears financial crisis would spread to the region.
Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39707.10 crore in calendar year 2008 (till 7 October 2008).
As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 1055.51 crore on Wednesday, 8 October 2008. Domestic funds bought shares worth a net Rs 1083.56 crore.
Japan's Nikkei 225 average was down 10.6% at 974.12. In other Asian shares, key benchmark indices in Hong Kong, South Korea, China and Singapore were down 5% to 7%.
Overnight, US stocks slumped more than 7% on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill.
At the centre of a financial crisis now almost a month old, credit markets remained in deep distress. With banks desperate to protect capital, the interbank cost of borrowing dollars rocketed. Three-month interbank rates for dollar loans hit their highest level of the year.
The cost of protection against defaults in Asia's sovereign and corporate debt also soared to record highs on Friday, 10 October 2008, on fears financial crisis would spread to the region.
Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39707.10 crore in calendar year 2008 (till 7 October 2008).
As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 1055.51 crore on Wednesday, 8 October 2008. Domestic funds bought shares worth a net Rs 1083.56 crore.
Wednesday, October 8, 2008
Pre Market Report 08/10/2008
A fresh setback in global markets will result in a further fall on the domestic bourses today, 8 October 2008. Investors are unlikely to build large positions as the market remains closed tomorrow, 9 October 2008, on account of Dasara. Some of the equipment makers for the nuclear power plants may rise on reports India and United States are likely to sing the civilian nuclear deal on Friday, 10 October 2008.
US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5 percent. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors.
Key benchmark indices in Asia were down by between 2.9% to 5.7% today, 8 October 2008, even as central banks across Asia stepped up to offer more support to commercial banks on to try to ease painful pressure on funding costs from a vicious global credit squeeze.. The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers.
Back home, after Monday's (6 October 2008) heavy slide, the market witnessed highly choppy trade on Tuesday, 7 October 2008. While the 30-share BSE Sensex slid 106.46 points, the S&P CNX Nifty rose 4.25 points.
Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39159.10 crore in calendar year 2008 (till 6 October 2008).
As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 680.42 crore on Tuesday, 7 October 2008. Domestic funds bought shares worth a net Rs 548.29 crore.
Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India.
The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008.
Meanwhile, as per reports, United States and India plan to sign a potentially lucrative agreement on Friday, 10 October 2008, to open up nuclear trade between the two countries for the first time in three decades. The pact will provide India with access to US nuclear fuel, reactors and technology, overturning a ban on such trade instituted after India first conducted a nuclear test in 1974.
US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5 percent. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors.
Key benchmark indices in Asia were down by between 2.9% to 5.7% today, 8 October 2008, even as central banks across Asia stepped up to offer more support to commercial banks on to try to ease painful pressure on funding costs from a vicious global credit squeeze.. The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers.
Back home, after Monday's (6 October 2008) heavy slide, the market witnessed highly choppy trade on Tuesday, 7 October 2008. While the 30-share BSE Sensex slid 106.46 points, the S&P CNX Nifty rose 4.25 points.
Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39159.10 crore in calendar year 2008 (till 6 October 2008).
As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 680.42 crore on Tuesday, 7 October 2008. Domestic funds bought shares worth a net Rs 548.29 crore.
Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India.
The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008.
Meanwhile, as per reports, United States and India plan to sign a potentially lucrative agreement on Friday, 10 October 2008, to open up nuclear trade between the two countries for the first time in three decades. The pact will provide India with access to US nuclear fuel, reactors and technology, overturning a ban on such trade instituted after India first conducted a nuclear test in 1974.
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