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Tuesday, September 23, 2008

Market to edge lower on weak global cues


Key benchmark indices are geared for a weak start today, 23 September 2008 tracking weak global markets on concerns of the long-term implications of the US Federal Reserve’s $700 billion bailout plan worried investors. Volatility is likely to remain high as derivative contracts for September 2008 series expire on Thursday, 25 September 2008.

As per reports, Nifty rollover of positions from September 2008 series to October 2008 series was 29% while market-wide rollover stood at 25%, as on Monday, 22 September 2008.

Crude oil prices soared to an intra-day high of $130 a barrel on Monday, 22 September 2008 before easing in a rally sparked by the expiry of the front-month futures contract and weakness in the US dollar. US light crude for November delivery was down 42 cents at $108.95 a barrel.

Most Asian markets were trading weak today, 23 September 2008. China's Shanghai Composite slipped 0.48% or 10.83 points at 2,225.57, Hong Kong's Hang Seng plunged 2.19% or 429.51 points at 19,202.69, Singapore's Straits Times fell 1.88% or 47.78 points at 2,496.35, Taiwan's Taiwan Weighted dropped 0.21% 12.72 points at 6,097.88. However, South Korea's Seoul Composite was up 0.31% or 4.58 points at 1,464.92.

US markets witnessed a sell off on Monday, 22 September 2008 on worries about the government's ability to bailout the financial system. The Dow plunged 372.75 points, or 3.27%, to 11,015.69. The S&P 500 index slipped 47.99 points, or 3.82%, to 1,207.09, and the Nasdaq Composite index was down 94.92 points, or 4.17%, to 2,178.98.

Back home, profit booking after a solid surge in the previous session and rise in crude oil pulled the market lower on Monday, 22 September 2008. The BSE 30-share Sensex fell 47.36 points or 0.34% to 13,994.96 and the S&P CNX Nifty fell 22.20 points or 0.52% to 4223.05.

Foreign institutional investors (FIIs) were net equity buyers worth Rs 138.21 crore while mutual funds sold shares worth Rs 206.12 crore on Monday, 22 September 2008, according to provisional data on NSE. They were net buyers of Rs 511.52 crore in the futures & options segment on Monday, 22 September 2008.