Markets may see a terrible start on global meltdown

Today’s start is excepted to be scary looking at a drastic fall across the globe. Panic selling will led to a terrible trade.

Headlines for the day:

Pranab promises fast-track reforms
AI's defaults may hit Indian banks, warns Moody's
Economists hopeful of pause in rate rise cycle in September

Major corporate action

Results: ABB, GMR Infrastructure, Gujarat State Petronet Ltd., Tata Communications, United Breweries
Ex-date for final dividend of Cipla
Ex-date for interim dividend of MRF


Indian indices

It appears to be a very oversold market that has come down far too rapidly. The big worry is the possibility of double dip in the US and its impact on India. Concerns about flagging economic growth and fears of a financial meltdown in the euro zone have led to panic across the globe. Today's start is not going to be something different as the Indian markets are expected to witness a terrible start, with no improvement in the global picture. Investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in Europe and the United States. Panic selling will led to a weak trade

Investors are focusing on gold as a safe haven, which has touched record highs. Demand worries have led to a fall in oil prices. Later in the day, markets will track global peers for further direction.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs1,609.60 crore on August 08, 2011. The domestic investors have bought Indian shares worth a net of Rs356.40 crore on August 05, 2011. The data is as per the SEBI website.

Global signals

The European stock markets fell to their lowest levels in two years on Monday as investors reacted to fears that the US economy could slip back into recession and that Europe’s debt crisis is far from over.

The US stocks plunged on Monday in the heaviest volume since last year's 'flash crash,' taking the S&P 500 down more than 6% on growing fears of a recession, in the first session after the historic loss of the country's pristine triple-A credit rating.

The Asian stock markets nosedived on Tuesday and the Swiss franc held near a record high, as investors dumped riskier assets in a global rout triggered by fears that political leaders are failing to tackle debt crises in Europe and the United States. SGX Nifty was trading 271.50 lower, pointing for a terrible start on the Indian bourses.

Commodity cues

Crude oil dropped on Monday, crashing below technical support levels as the reduction of the United States' top-tier credit rating hammered markets and stoked concerns of an economic slowdown.