Market to extend losses

Concerns about the weakening domestic and global economy and selling by foreign funds will see the market extending recent steep losses. Asian stocks dropped as dismal US. economic data intensified concerns of a long and deep global recession. US stocks declined sharply on Thursday, 20 November 2008.

As per the provisional data released by the stock exchanges after trading hours, foreign institutional investors (FIIs) today, 20 November 2008, sold shares worth a net Rs 762.94 crore. FIIs are dumping stocks in Indian and other emerging markets to shore up resources to beat the global liquidity crunch. FII outflow reached Rs 52,820.80 crore in calendar 2008, so far, till 19 November 2008, as against an inflow of a huge Rs 71,440.10 crore in the corresponding period last year.

In Asia, the key benchmark indices in Hong Kong, Japan, South Korea, Singapore, China and Taiwan were down by between 0.65% to 4.28%.

The number of American workers on the unemployment rolls surged to the highest in a quarter century, government data on Thursday showed, while a regional manufacturing gauge slumped as the economic misery intensified.

The fate of US corporate titans like General Motors, Ford Motor Company and Citigroup was uncertain, adding to a general mood of anxiety. Democratic congressional leaders demanded executives at the Big Three automakers come up with a detailed business survival plan in exchange for their support of up to $25 billion in loans. Citi, not long ago the world's most valuable financial firm, was reportedly considering selling itself.

US stocks tumbled on Thursday. The Dow Jones industrial average plunged 444.99 points, or 5.56%, to 7,552.29. The Standard & Poor's 500 Index lost 54.14 points, or 6.71%, to 752.44. The Nasdaq Composite Index slid 70.30 points, or 5.07%, to 1,316.12.