Market may tumble on global meltdown

Domestic bourses are expected to correct sharply today, 16 August 2007, on weak global cues. Another cause for concern is the rally in yen against the US dollar. This may lead to unwinding of carry trade. Yen was hovering at 115.97 against the dollar today.

The BSE 30-share Sensex declined marginally by 16.30 points, or 0.11%, to 15,000.91, on 14 August 2007. The S&P CNX Nifty slipped 3.45 points, or 0.08%, to 4,370.20, on that day.

Stock markets remained closed on 15 August 2007, on account of Independence day.

All Asian indices declined today, 16 August 207 as investors concerned over the health of global credit markets continued to sell stocks across the board.

Hong Kong's Hang Seng (down 3% at 20,735.32), Japan's Nikkei (down 2.60% at 16,047.46), Taiwan's Taiwan Weighted (down 3.59% at 8,284.29), Singapore's Straits Times (down 3.96% at 3,143.59), South Korea's Seoul Composite (down 6.24% at 1,704.48) edged lower.

US shares had tumbled yesterday, 15 August 2007, after the Federal Reserve added more cash to the banking system but failed to quash investors' jitters about problems in lending. The Dow Jones Industrial Average fell 167.45 points, or 1.29%, to 12,861.47. Broader stock indicators also fell. The S&P 500 index dropped 19.84 points, or 1.39%, to 1,406.70. The Nasdaq Composite index lost 40.29 points, or 1.61%, to 2,458.83.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 331.52 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 308.94 crore on Tuesday, 14 August 2007.

US oil prices slipped below $73 a barrel on Thursday, 16 August 2007, on signs a major storm brewing in the Atlantic might not endanger Gulf of Mexico oil platforms. US crude oil prices fell 52 cents to $72.81 a barrel. London Brent crude lost 56 cents to $71.08 a barrel