Market is likely to continue its downward journey on weak global cues. Market posted losses for fifth straight day yesterday, 21 November 2007 on weak global cues coupled with media reports that the government is considering raising the securities transaction tax (STT) to 0.5%. Another matter of concern is the Japanese Yen which has risen to two year high on concerns of credit markets and record fuel costs. The yen was was trading at the mid-108 levels against the dollar. Any rise from these levels may lead to carry trade unwinding.
The 30-share BSE Sensex tumbled 678.18 points or 3.52% at 18,602.62 on Wednesday, 21 November 2007. The broader CNX S&P Nifty lost 219.85 points or 3.8% at 5,561.05 on that day. It has declined 1326 points in the past five trading sessions from its close of 19929.06 on 14 November 2007.
Finance minister P Chidambaram could move an appropriate amendment to the Finance Act, 2007, in Parliament in the current winter session for raising STT, reports suggested.
Asian markets were trading mixed today, 22 November 2007. Japan's Nikkei (down 0.40% or at 14,777.91) and South Korea's Seoul Composite (down 0.25% at 1,802.48), declined
However Hong Kong's Hang Seng (up 0.67% at 26,797.22), Straits Times (up 0.08% or 2.83 points at 3,350.03), and Taiwan Weighted (up 0.08% at 8,490.91) rose.
US stocks fell to the lowest in three-months on Wednesday, 21 November 2007 following the growing unease over the economic outlook and weakening credit markets. The Dow Jones Industrial Average declined 140.87, or 1.08%, to 12,868.30. The Nasdaq Composite index dropped 20.10, or 0.77%, to 2,576.28. The S&P 500 lost 14.40, or 1.07%, to 1,424.10.
Crude oil traded near $97 a barrel in New York after falling from a record yesterday, 21 November 2007 amid signs of slowing demand growth in the US, the world's largest energy consumer. Crude oil for January delivery was at $97.44 a barrel, up 15 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.
As per provisional data, FIIs sold shares worth a net Rs 2007.70 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 630.06 crore on Wednesday, 21 November 2007.