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Friday, January 22, 2010

Market likely to fall sharply


Indian equities are likely to open negative on Friday, January 22, 2010. SGX Nifty is trading at 5,005 (7.48 am), 80 points lower than Thursday`s closing of 5,085.

The market will watch for RIL, Grasim Industries, Bharti Airtel, Punj Lloyd and Tech Mahindra third quarter results today.

Asian stocks fell for a fifth day on concern tax changes will hurt profits at Australian mining companies and a stronger yen will crimp the value of Japanese exporters` overseas sales. Japanese benchmark index Nikkei 225 declined 310.96 points, or 2.86%, to trade at 10,557.45.

US stocks tumbled on Thursday. President Barack Obama`s plan to change the way big banks make their money plunged the stock market back into the fear and uncertainty that marked the financial crisis. The Dow fell 213.27 points, or 2.01%, to 10,389.88. Among Indian ADRs, Wipro (0.22%), Dr Reddy`S Laboratories (1.51%), MTNL (1.68%), Infosys Technologies (2.19%) were major losers.

European stocks dropped for a second day, erasing the gains for this year, as mining and banks shares tumbled and a report showed an unexpected rise in American jobless claims. UK`s benchmark index FTSE 100 dropped 85.70 points, or 1.58%, to end at 5,335.10.

In the spot market, the Dollar Index dropped 0.292% to 78.18. It touched a high of 78.39 and a low of 78.14 after opening at 78.31. (21:19 ET)

Oil prices dropped Thursday to the lowest level in a month after a government report showed the country continues to use less energy than last year, raising doubts about the strength of the fragile economic recovery. Benchmark crude for March delivery fell USD 1.66 to settle at USD 76.08 a barrel on the New York Mercantile Exchange.