Weak global cues may trigger lower start; IIP data eyed

Key benchmark indices are likely to see nervous start amid weak global cues. The Nifty futures traded as SGX CNX Nifty Index Futures in Singapore were down 80 points. The index of industrial production data for October 2008 scheduled to be announced later during the day will be closely watched.

As per reports, industrial production is expected to grow marginally or register a dip for the first time since 1994, on slowing demand and deepening recessions in major economies. The index had expanded 12.2% in October 2007.

Meanwhile, the Securities and Exchange Board of India's (Sebi) Mutual Fund Advisory Committee (MFAC) will meet today, 12 December 2008 to discuss key issues on the agenda, including further tightening of asset liability norms and valuation of non-traded debt. The meeting will also review limits on exposure to individual securities and whether there should be limits on exposure to pass-through certificates. Another related issue on the agenda of the committee is the valuation of non-traded debt securities. The most-debated issue of hiking the net worth requirement for an asset management company is also likely to be finally addressed.

Asian markets were trading weak today, 12 December 2008, on worries over the fate of the US auto industry bailout plan and a retreat in global banking shares while lower oil prices pressured commodity counters. China's Shanghai Composite plunged 1.94% or 39.37 points at 1,992.31, Hong Kong's Hang Seng slipped 2.41% or 375.87 points at 15,238.03, Japan's Nikkei was down 1.27% or 110.37 points at 8,610.18, Singapore's Straits Times declined 1.28% or 22.99 points at 1,771.17, South Korea's Seoul Composite fell 0.58% or 6.73 points at 1,147.70 and Taiwan's Taiwan Weighted was down 0.50% or 23.44 points at 4,632.13.

US markets closed on Thursday, 11 December 2008 on bleak prospects for a federal bailout of Detroit's Big Three automakers, while bleak comments about the banking sector from JPMorgan's chief executive hit financial shares.

The Dow Jones plunged 196.33 points, or 2.24%, to 8,565.09. The S&P 500 index declined 25.65 points, or 2.85%, to 873.59, and the Nasdaq Composite index fell 57.60 points, or 3.68%, to 1,507.88.

Closer home, hopes that the central bank may cut rates further and reports that the government is likely to come out with a second fiscal stimulus for the economy helped the market rebound in the last one hour of trade on Thursday, 11 December 2008. The BSE 30-share Sensex slipped 9.44 points or 0.10% to 9,645.46 and the S&P CNX Nifty fell 8.10 points at 2,920.15 on that day.

Foreign institutional investors (FIIs) were net buyers worth Rs 444.18 crore while mutual funds sold shares worth Rs 15.37 crore on Thursday, 11 December 2008, according to provisional data on NSE.