Weak Asian markets may trigger lower start

Key benchmark indices are likely to open lower today, 24 November 2008, in line with its Asian peers. The SGX November 2008 Nifty futures were down 32 points. However volatility will be high ahead of the derivatives expiry for November 2008 series on Thursday, 27 November 2008.

Asian markets were trading lower today, 24 November 2008, led by a sharp slide in financial counters as the fate of global banking giant Citigroup remains unclear. China's Shanghai Composite fell 1.30% or 25.58 points at 1,943.81, Hong Kong's Hang Seng lost 1.60% or 202.96 points at 12,456.24, Singapore's Straits Times was down 0.81% or 13.45 points at 1,648.65, South Korea's Seoul Composite slipped 2.32% or 23.29 points at 980.44 and Taiwan's Taiwan Weighted declined 1.75% or 72.80 points at 4,098.30. Japanese markets are closed today, 24 November 2008 for a public holiday.

Citigroup India holds equities worth over Rs 8,600 crore at Friday's, 21 November 2008 closing rates. Citi's assets in India include its equity investments in over 130 companies. As per Citigroup's CEO Vikram Pandit recent statements, the bank might look at selling some of its assets to stay afloat, rather than merge with some other bank.

US stocks rallied on Friday, 21 November 2008 as investors welcomed reports that President-elect Barack Obama unveiled his plan to combat the US economic crisis, instilling confidence about the administration's ability to take action. He also nominated a new treasury secretary Timothy Geithner, who has been closely involved in the rescue of Bear Stearns and AIG.

The Dow Jones industrial average jumped 494.13 points, or 6.54%, to 8,046.42. The Standard & Poor's 500 Index shot up 47.59 points, or 6.32%, at 800.03. The Nasdaq Composite Index climbed 68.23 points, or 5.18%, to 1,384.35.

Back home, key benchmark indices edged higher on Friday, 21 November 2008 as battered pivotals made a comeback snapping seven-day losses. A surge in US index futures and gains in European stocks boosted the domestic bourses. The BSE 30-share Sensex rose 464.20 points, or 5.49%, to 8,915.21 and the S&P CNX Nifty gained 140.30 points, or 5.50%, to 2693.45, on that day.

Foreign institutional investors (FIIs) were net sellers worth Rs 705.56 crore while mutual funds bought shares worth Rs 46.22 crore on Friday, 21 November 2008, according to provisional data on NSE.