Market may slide on weak global cues

The market may slide today on weak global cues. Volatility may remain high, as it had been in the recent past.

Meanwhile, annual inflation data, based on the wholesale price index, for the week ended 2 February 2008 is due today, 15 February 2008. Inflation was 4.11% in the week ended 26 January 2008 higher than 3.93% in the week ended 19 January 2008.

Asian markets were weak. Hang Seng (down 1.98% at 23,546.53), Japan's Nikkei (down 1.49% at 13,423.93), Taiwan's Taiwan Weighted index (down 0.25% at 7,845.32), South Korea's Seoul Composite index(down 0.95% at 1,681.38), Singapore's Straits Times index (down 0.22% at 3,038.80) and China’s Shanghai Composite index (down 1.81% to 4,470.05), all edged lower

US markets slumped on Thursday, 14 February 2008, as stocks fell after Federal Reserve Chairman Ben Bernanke alluded to the possibility of US nearing a recession, indicating the Fed may continue to ease interest rates. Bernanke and Treasury Secretary Paulson continued to forecast slow growth. Financial stocks were under pressure after Swiss banking giant UBS reported a loss of $11.12 billion in Q4 December 2007.

The Dow Jones industrial average plunged 175.26 points, or 1.40%, to 12,376.98. The Standard & Poor's 500 index slipped 18.35 points, or 1.34%, to 1,348.86, and the Nasdaq composite index dropped 41.39 points, or 1.74%, to 2,332.54.

Back home, the market rallied on the back of strong global cues on Thursday, 14 February 2008. The 30-share BSE Sensex surged 817.49 points or 4.82% at 17,766.63, recording its fourth biggest rise in percentage terms. The broader CNX S&P Nifty rose 272.55 points or 5.53% at 5202 on that day.

As per provisional data, foreign institutional investors (FIIs) purchased shares worth Rs 60.99 crore on Thursday, 14 February 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 205.03 crore on that day.

Crude oil prices fell in Asian trade today, 15 February 2008 amid continuing concerns about the ailing US economy. In morning trade, New York's main contract, light sweet crude for delivery in March fell 34 cents to $95.12 per barrel. London's Brent North Sea crude for March delivery was down 25 cents to $94.91.