Market may see further correction

The market is expected to see further correction today, 30 July 2007, after a sharp slump on Friday, 27 July 2007 when the Sensex plunged 541.74-point to 15,234.57, gripped by intense selling pressure following sharp fall in US and Asian stocks.

Value buying may emerge at lower level, cushioning a sharp correction.

As per provisional data, foreign institutional investors (FIIs) sold shares worth a net Rs 1475 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 727.32 crore on Friday, 27 July 2007.

Japanese shares fell sharply today, 30 July 2007, after the nation's ruling party suffered a major defeat in Sunday's parliamentary elections, with financial shares such as Mitsubishi UFJ Financial Group and Sompo Japan Insurance leading the decline. Japan's Nikkei plunged 1% at 17,111.17. Taiwan's Taiwan Weighted declined 0.65% at 9,102.31.

However, Hong Kong's Hang Seng (up 0.07% at 22,585.64), Singapore's Straits Times (up 0.15% at 3,497.91) and South Korea's Seoul Composite (up 0.19% at 1,886.71), edged higher.

Wall Street extended its steep decline for the second straight day Friday, 27 July 2007 pulling the Dow Jones industrials down more than 500 points over two days after investors gave in to mounting concerns that borrowing costs would climb for both companies and homeowners. The Dow slipped 208.10 points, or 1.54%, to 13,265.47. Broader stock indicators also fell. The S&P 500 ended down 23.71 points, or 1.60 %, at 1,458.95. The Nasdaq Composite index fell 37.10 points, or 1.43 %, to 2,562.24.

Oil prices were lower in morning in Singapore trade on Monday, 30 July 2007 on profit-taking even as key producer Iran expressed opposition to any hikes in OPEC crude output. New York's main contract, light sweet crude for September delivery, was down 35 cents at $76.67 a barrel from 77.02 dollars in late US trade Friday. Brent North Sea crude for September eased 41 cents to $75.85.