Market to undergo correction

The market is expected to decline following weak cues from global markets. US markets slumped yesterday, 1 November 2007 while Asian markets also suffered sharp losses in early trade today, 2 November 2007.

With major events—Reserve Bank of India (RBI)’s credit policy, Securities & Exchange Board of India (Sebi)’s meet on finalising participatory notes proposals, the Fed meet on interest rates and second quarter earnings done with, profit booking is likely to come at higher levels in the absence of near term triggers.

Asian markets slumped today, 2 November 2007, hurt by an overnight sell-off on Wall Street. Hang Seng (down 2.54% at 30,694.52), Nikkei (down 1.71% at 16,581.27), Taiwan's Taiwan Weighted (down 1.79% at 9,426.39), Singapore's Straits Times (down 1.74% at 3,737.33) and South Korea's Seoul Composite (down 0.72% at 2,048.22) all edged lower.

US markets tumbled yesterday, 1 November 2007, after brokerages downgraded Citibank and Bank of America, sparking fears of more credit crisis fallout. The Dow Jones industrial average slumped 362.14 points or 2.60%, to 13,567.87. The Standard & Poor's 500 index declined 40.94 points, or 2.64%, at 1,508.44, while the Nasdaq Composite index dropped 64.29 points, or 2.25%, to 2,794.83.

The Sensex slipped 113.64 points, or 0.57%, to 19,724.35 on Thursday, 1 November 2007. The broader based S&P CNX Nifty declined 34.20 points, or 0.58%, to 5,866.45, on Thursday, 1 November 2007.

As per provisional data, FIIs purchased shares worth a net Rs 74.25 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 56.22 crore on Thursday, 1 November 2007.

New York's main futures contract, light sweet crude for delivery in December gained 41 cents to $93.90 a barrel. Brent crude was up 71 cents to $90.43 a barrel.