Get ready to TUMBLE !

Key benchmark indices are likely to witness a gap down opening today, 18 September 2008 as fears that the global credit crisis could worsen further rattled investor confidence across the globe. Reports of Morgan Stanley being the next victim of credit crunch and spurt in crude oil may dampen the sentiment further. Volatility will be high ahead of the inflation data, which will be announced after market hours today, 18 September 2008.

The wholesale price index figure in the 12 months to 6 September 2008 will be watched closely. The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week’s annual rise of 12.34%, Government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.

US crude oil prices jumped $6.01, the largest one-day percentage gain in three months, to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.

Asian markets tumbled today, 18 September 2008, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group Inc.

China's Shanghai Composite plunged 5.12% or 98.80 points at 1,830.24, Hong Kong's Hang Seng slipped 5.19% or 914.66 points at 16,722.53, Japan's Nikkei tumbled 3.18% or 374.22 points at 11,375.57, Singapore's Straits Times was down 3.72% or 89.98 points at 2,329.31, South Korea's Seoul Composite declined 3.57% or 50.88 points at 1,374.38 and Taiwan's Taiwan Weighted fell 3.50% or 202.83 points at 5,598.04.

Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 1064.17 crore while mutual funds bought shares worth Rs 948.93 crore on Wednesday, 17 September 2008, according to provisional data on NSE.

FIIs were net buyers of Rs 382.80 crore in the futures & options segment on Wednesday, 17 September 2008. They were net buyers of index futures to the tune of Rs 267.58 crore and sold index options worth Rs 72.33 crore. They were net buyers of stock futures to the tune of Rs 196.31 crore and sold stock options worth Rs 8.87 crore