Big gap- down likely at start as recession fears deepen

Global recession fears have taken a big toll. This may lead to a weak start on the Dalal Street, extending previous session’s losses.

Headlines for the day:

Realty regulator soon, says Union Minister

State Bank of India doubles MTN programme size to $10 billion

Indian Oil to raise borrowing limits by Rs 30,000 crore

Essar Power eyes distribution licence

ITC raises cigarette prices after VAT hike



Major corporate action

RDB Rasayans IPO closes today
Ex-date for final dividend of Geodesic, Archies
Ex-date for dividend of Prakash Industries, Ucal Fuel Systems

Indian indices

The weakness is likely to continue today as the US Federal Reserve's weak economic outlook and disappointing China data stirred fears of a global recession and battered markets. It is expected to be a caution day after yesterday's biggest fall over two years.

The Indian markets may begin the trade with a big gap-down following bad news across the globe. Panic selling may continue in today’s trade. The Nifty is expected to start below the 4900 mark.

Daily trend of FII/MF investment in equities

The FIIs have purchased Indian stocks worth a net of Rs333.70 crore on September 22, 2011. The domestic investors have bought Indian shares worth a net of Rs216.10 crore on September 21, 2011. The data is as per the SEBI website.

Global signals

The European stocks and the euro plunged on Thursday (September 22, 2011) amid warnings about growth and overstrained European banks exposed to the Greek- eurozone debt crisis, and after a US boost to the economy fell flat.

The US stocks plunged on Thursday, extending a selloff to four days, as policymakers' failure to arrest global economic stagnation sent markets spiraling downward.

The Asian markets were trading in the negative terrain on Friday (September 23, 2011) as recession fears dominate sentiment. SGX Nifty was trading 41 points lower, suggesting for a weak start on the Indian bourses.

Commodity cues

Crude Oil prices fell by more than $5 a barrel on Thursday with US futures touching $80.25 a barrel, as a combination of dismal signals heightened worries about global economic growth and a rallying US dollar added to downward momentum.