Market seen opening weak on global cues

Key benchmark indices are headed for a weak start on dismal global cues on fresh worries the global banking crisis may last longer than expected.

In a historic presidential inaugural at the US Capitol on Tuesday, 20 January 2009, Barack Hussein Obama was sworn in as the 44th and the first black president at a $150 million show watched by around two million people.

US stocks ended lower on Tuesday, 20 January 2009, as rising concerns about the financial health of the banks and financial system weakened the feel-good factor inspired by the inauguration of Barack Obama.

High expectations for details on how the new US administration would address the growing banking crisis and faltering economy were dampened after the inauguration speech by Barack Obama concluded with little new information to digest.

The Dow Jones industrial average dropped 332.13 points, or 4.01%, to end at 7,949.09. The Standard & Poor`s 500 index went down 44.90 points, 5.28%, to settle at 805.22. The Nasdaq Composite index declined 88.47 points, or 5.78%, to close at 1,440.86.

Asian stocks declined today, 22 January 2009, led by financial companies and metals producers, on concern mounting bank losses worldwide will intensify the global recession and squeeze demand for the region`s commodities.

Japanese benchmark index Nikkei fell 177.69 points, or 2.20%, to trade at 7,888.10, Hong Kong`s Hang Seng index declined 425.17 points, or 3.28%, to trade at 12,534.60, China`s Shanghai Composite decreased 22.87 points, or 1.15%, to trade at 1,971.24, Taiwan`s Taiex index slipped 2.10 points, or 0.05%, to trade at 4,240.51, South Korea`s Kospi index slid 24.59 points, or 2.18%, to trade at 1,102.22 and Singapore`s Straits Times dropped 39.67 points, or 2.30%, to trade at 1,683.70.

Crude futures for March 2009 declined on Tuesday, 20 January 2009, over fears of weak global energy demand. Trading in the final day of contract, Light, sweet crude for February delivery rose $2.23 to settle at $38.74 a barrel on the New York Mercantile Exchange (NYMEX). The March 2009 contract, where the vast majority of trading took place, fell $1.53 to settle at $40.68.

Back home, India's largest dedicated housing finance company by total income HDFC will declare its Q3 December 2008 results today, 21 January 2009. Meanwhile, aggregate results of 267 companies showed 0.30% fall in net profit on a 26.20% increase in net sales in Q3 December 2008 over Q3 December 2007.

Fears that the global financial sector crisis would trigger more foreign fund outflows and record loses at British bank Royal Bank of Scotland pulled the market lower on Tuesday, 20 January 2009. The BSE 30-share Sensex lost 229.02 points or 2.45%, to 9,100.55 and the S&P CNX Nifty fell 49.60 points, or 1.74%, to 2,796.60.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 2,644.40 crore (till 19 January 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 308.15 crore while mutual funds bought shares worth Rs 185.05 crore on Tuesday, 20 January 2009,