Weak global cues may trigger lower opening

Local benchmark indices are likely to open lower today, 19 August 2008 tracking weak global cues. Fears of more losses from the mortgage crisis globally may continue to weigh on the sentiment.

Asian markets were trading weak today, 19 August 2008. China's Shanghai Composite was down 0.34% or 7.96 points at 2,311.91, Japan's Nikkei plunged 2.65% or 349.02 points at 12,816.43, Hong Kong's Hang Seng tumbled 0.92% or 193.50 points at 20,737.17, Taiwan's Taiwan Weighted slipped 0.56% or 39.48 points at 6,961.26, Singapore's Straits Times fell 1.25% or 34.79 points at 2,742.19 and South Korea's Seoul Composite lost 2.12% or 33.31 points at 1,534.4

US markets slumped yesterday, 18 August 2008, on the prospect of more losses from the mortgage crisis, sending financial stocks on a downward spiral. Shares of Fannie Mae and Freddie Mac lost more than 20% each after Barron's reported that the US Treasury may need to bail out the home finance giants, which could wipe out shareholders.

The Dow Jones industrial average plunged 180.51 points, or 1.55%, to 11,479.39. The S&P 500 index lost 19.60 points, or 1.51%, to 1,278.60, and the Nasdaq declined 35.54 points, or 1.45%, to 2,416.98.

Back home, the BSE 30-share Sensex fell 78.52 points or 0.53% to 14,645.66 and the S&P CNX Nifty lost 37.65 points or 0.85% to 4,393.05, yesterday, 18 August 2008, after latest economic data showed India’s wholesale price index rose to a 16-year high.

The barometer index is down 5641.33 points or 27.8% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6,561.11 points or 30.93% away from its all-time high of 21,206.77 struck on 10 January 2008.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 475.50 crore while mutual funds purchased shares worth Rs 128.91 crore on Monday, 18 August 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 430.18 crore in the futures & options segment on Monday, 18 August 2008. They were net buyers of index futures to the tune of Rs 32.73 crore and purchased index options worth Rs 424.85 crore. They were net sellers of stock futures to the tune of Rs 24.41 crore and sold stock options worth Rs 3 crore.