More jitters for the market

Key benchmark indices are likely to edge lower for sixth running day today, 16 September 2008 mirroring mayhem in global markets triggered by fears of the state of the US financial system after Lehman Brothers filed for bankruptcy, insurer AIG struggled for survival and Merrill Lynch was sold to Bank of America. Reports of Morgan Stanley being the next target of financial crisis may further dampen the sentiment

Meanwhile, crude oil prices plunged to a seven-month low as turmoil in the US financial system heightened concerns energy demand may slow. US light crude for October 2008 delivery fell $3.02 to $92.69 a barrel yesterday, 15 September 2008.

As per reports, State Bank of India paid 50% higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007. Reliance Industries paid 5% higher advance tax to Rs 680 crore in Q2 September 2008 over Q2 September 2007.

Asian markets were trading weak today, 16 September 2008 as fears of a global financial crisis gripped investors across Asia. China's Shanghai Composite fell 3.67% or 76.37 points at 2,003.29, Japan's Nikkei lost 5.06% or 618.67 points 11,596.09, Hong Kong's Hang Seng plunged 6.52% or 1261.57 points at 18,091.33, Taiwan's Taiwan Weighted slipped 5.04% or 304.89 points at 5,747.56, Singapore's Straits Times declined 2.39% or 59.46 points at 2,427.09 and South Korea's Seoul Composite tumbled 5.70% or 84.26 points at 1,393.66

US markets collapsed on Monday, 15 September 2008 as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profits. The Dow Jones Industrial Average plunged 504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard & Poor's 500 index fell 59 points, or 4.71% to 1,192.70.

Back home, bears ruled the roost on the bourses for the fifth consecutive day yesterday, 15 September 2008 as key benchmark indices posted substantial losses after US investment bank Lehman Brothers filed for bankruptcy protection. The BSE 30-share Sensex lost 469.54 or 3.35% at 13,531.27 and the S&P CNX Nifty lost 155.55 points or 3.68%, to settle at 4072.90 on that day.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 763.02 crore while mutual funds bought shares worth Rs 1328.14 crore on Monday, 15 September 2008, according to provisional data on NSE. FIIs were net buyers of Rs 1156.23 crore in the futures & options segment on that day.

Meanwhile, Rajya Sabha member and former head of the PM’s economic panel C Rangarajan yesterday, 15 September 2008 said inflation may come down to 10% by December 2008. The former RBI governor said inflation last year was moderate towards the end of December, so base effect will heighten inflation in the current year. The base effect relates to the impact on inflation because of its level in the year-ago period.