Daily call - Oct 24 2008

Corporate results that have come in so far don’t rock, but they could rock the Sensex boat as Asian markets continue to weaken despite a last hour fight back in the Dow Thursday night. Appreciating Yen is worrying Japan , which is now at its highest level in 5 years against the dollar. OPEC meets today to discuss on a production cut. While Iran and Venezuela are as usual rooting for a cut of 2 million barrels per day, Saudi Arabia may settle for a cut of 0.75 million to 1 million, which may not be sufficient for a rally in crude.

Now that we have comfortable closed below the 10,000 mark, I don’t see the Sensex in any hurry to trek back to higher altitudes. The talk of imploding hedge funds and several weak governments in trouble prohibits us from putting on our rosy glasses. Reliance Results were also tepid. Continue to be on the sidelines.