Market to see sharp correction on weak global cues

The market is expected to see sharp correction on weak global cues. The BSE 30-share Sensex lost 207.83 points, or 1.36%, to 15,100.15, on Thursday, 9 August 2007, tracking weak European indices. The S&P CNX Nifty declined 58.90 points, or 1.32%, to 4,403.20, on that day

Annual inflation data for the week ending 28 July 2007 is expected by today, 10 August 2007, afternoon. Inflation growth slowed to 4.36% in the week ending 21 July 2007 due to fall in prices of pulses, fruits and eggs. However, certain food items like vegetables and most manufactured products became dearer. Prices of fuels like naphtha rose.

Asian stocks tumbled across the board on Friday following a rout in global markets as credit jitters flared up, after a major French bank froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.61% at 16,721.96.

Hong Kong's Hang Seng (down 3.05% at 21,754.54), Taiwan's Taiwan Weighted (down 2.90% at 8,916.30), Singapore's Straits Times (down 3.41% at 3,296.81) and South Korea's Seoul Composite (down 3.71% at 1,837.80) plunged.

US stocks plunged yesterday, 9 August 2007, on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83%, to 13,270.68. The broader Standard & Poor's 500 index fell 44.40 points, or 2.96%, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16%, to 2,556.49.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 27.23 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 72.14 crore on Thursday, 9 August 2007.

Oil prices were steady at above $71 on Friday, 10 August 2007, as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to $71.54 a barrel. London Brent crude rose 11 cents to $70.32.