Market likely to open lower

PRE-SESSION

Market may open weak

The market is expected to open on a weak note tracking lower global equity markets. Market may also see volatile swings as experienced in the recent past.

The Indian market has been the worst hit in the recent meltdown witnessed by markets across the globe. The benchmark index BSE Sensex lost 21.25% to 15,975.52 in the calendar year as on Friday, 7 March 2008. The least hit market was that of Taiwan which slipped just 0.30% in the calendar year as on Friday, 7 March 2008.

All eyes will now be the US Federal Reserve which meets on 18 March 2008 to review interest rates. A cut in interest rate, as expected by street may provide some support to the markets. Fed Chairman Ben Bernanke had signaled a readiness to cut interest rates again to prevent further damage to the weak US economy, even as he took note of rising inflation risks.

Asian markets were trading weak today, 10 March 2008. Japan's Nikkei (down 1.43% at 12,599.78), Hang Seng (down 1.29% at 22,211.44), Shanghai Composite (down 2.30% to 4,201.74), Taiwan's Taiwan Weighted (down 2.28% at 8,336.70), Singapore's Straits Times (down 2% at 2,808.89) and South Korea's Seoul Composite (down 1.83% at 1,633.55) edged lower.

US markets slumped on Friday, 7 March 2008 pushing the Dow Jones industrial average below the key psychological level of 12,000, after fed action to stem the credit crunch failed to offset the damage from February 2008 job losses seen as the most blatant sign yet of recession. The Dow Jones industrial average declined 147 points down to 11,894, the Nasdaq Composite index ended 8 points lower to 2,212 and the S&P 500 index settled with loss of 10.97 points at 1,293.37.

Back home, the 30-share BSE Sensex plunged 566.56 points or 3.42% at 15,975.52 on Friday, 7 March 2008 which is its lowest closing since 18 September 2007. The broader CNX S&P Nifty was down 149.80 points or 3.04% at 4771.60 on that day.

Stock prices suffered losses during the week ended Friday, 29 February 2008 tracking weak global markets which in turn were hit by US recession worries. The sentiment was also hit by a hike in short term capital gains tax and alternation of tax treatment of securities transaction in Union Budget 2008-09 announced on Friday, 29 February 2008.

The BSE Sensex slumped 1,603.20 points or 9.12% to 15,975.52 in the week ended Friday, 7 March 2008. The S&P CNX Nifty declined 451.9 points or 8.65% to 4,771.60 in the week.

Inflation based on the wholesale price index rose 5.02% in the 12 months to 23 February 2008, higher than the previous week's rise of 4.89%, government data showed on Friday, 7 March 2008. The annual inflation rate was 6.20% during the corresponding week of the previous year.

As per provisional data, foreign institutional investors (FIIs) bought shares worth Rs 513.04 crore on Friday, 7 March 2008. Domestic institutional investors (DIIs) were net sellers of shares worth Rs 66.79 crore on that day.

FIIs were net buyers of Rs 584.26 crore in the futures & options segment on Friday, on Friday, 7 March 2008. They were net sellers of index futures to the tune of Rs 109.65 crore and bought index options worth Rs 387.19 crore. They were net buyers of stock futures to the tune of Rs 300.30 crore and bought stock options worth Rs 6.42 crore.

Crude oil rose today, 10 March 2008 bolstered by a bout of cold weather in the United States, but prices stayed below the record high of $106.54 a barrel struck on Friday, 7 March 2008. U.S. light crude for April delivery was up 26 cents at $105.41 a barrel