Market geared for dismal start on weak global cues

Key benchmark indices are likely to plunge in opening trade today, 24 February 2009, as they open after a local holiday on Monday, 23 January 2009, in sync with global equity rout on uncertainty about the latest potential US government action to shore up beleaguered banks. The SGX Nifty futures for February 2009 series were sharply lower by 51 points in Singapore.

Volatility is also likely to remain high ahead of the February series F&O expiry on Thursday, 26 February 2009. As per reports, rollover of Nifty positions from February 2009 series to March 2009 series stood at 40% while marketwide rollover of positions was 29%, as on Friday, 20 February 2009.

Asian markets were trading weak today, 24 February 2009 as concerns grew about the global financial system. China's Shanghai Composite slipped 1.16% or 26.77 pints at 2,279, Hong Kong's Hang Seng plunged 3.10% or 108.77 points at 12,766.33, Japan's Nikkei tumbled 2.60% or 191.66 points at 7,184.50, Singapore's Straits Times fell 2.10% or 24.21 points at 1,596.48, South Korea's Seoul Composite declined 3.24% or 35.67 points at 1,063.88 and Taiwan's Taiwan Weighted shed 0.99% or 44.50 points at 4,433.28.

US markets slumped on Monday, 23 February 2009 with the Dow Jones industrial average sliding to an 11-year low on Monday, 23 February 2009 as investors dumped shares on uncertainty about the latest potential US government action to shore up beleaguered banks. Making matters worse, worries about a fall-off in business and consumer spending on technology hurt the biggest names in the tech sector. Worries on earnings expectations for 2009 also contributed to the sell-off.

The Dow Jones industrial average dropped 250.89 points, or 3.41%, to 7,114.78, its lowest close since 7 May 1997. The Standard & Poor`s 500 index fell 26.72 points, or 3.47%, to 743.33, lowest finish since 11 April 1997. The technology-laden Nasdaq Composite index lost 53.51 points, or 3.71%, to 1,387.72.

Back home, a disappointing interim budget 2009-10 presented on 16 February 2009 and weak global markets pulled local equities sharply lower in the week ended 20 February 2009. The BSE 30-share Sensex fell 791.53 points or 8.22% to 8,843.21 and the S&P CNX Nifty lost 211.90 points or 7.18% at 2,736.45 in the week.

According to provisional data on NSE, FIIs were net sellers worth Rs 201.07 crore while mutual funds bought shares worth Rs 167.18 crore on Friday, 20 February 2009.