Weak global cues and yesterday's slump may see the market open low.
After crashing over 400 points in last two trades the weakness in the market may continue. A slide in Asian indices, sudden fall in the FII inflows in the domestic market and sharp rise in crude oil price may also see the market fall further. Among the local indices, the Nifty may slip to 4500 while on the upside it could test the 4575 level. The Sensex has a likely support at 14900 and could test higher levels at 15325.
US indices closed negative on Wednesday on spike in oil prices. While the Dow Jones slipped by 110 points at 11533, the Nasdaq lost 2 points to close at 2429.
Indian floats ended lower. HDFC Bank was the major loser dropped 4.02%, while Patni Computer, Tata Motors, Dr Reddy, Wipro and ICICI Bank dropped nearly 1-2% each. Satyam and VSNL dropped nearly 0.90% each. Infosys & MTNL was the only gainer amongst the ADRs and gained 0.88% and 1.35%.
Crude oil prices moved up, with the Nymex light crude oil for September series rising by $2.99 at $116 a barrel. In the commodity space, the Comex gold for December delivery flared up by $16.90 to settle at $831.50 a troy ounce.
Daily trend of FII/MF investment in equities
On August 12, 2008, FIIs were net sellers of stocks to the tune of Rs384.30 crore (purchases worth Rs2636.50 crore and sales of Rs3020.80 crore). while domestic mutual funds were net sellers of stocks to the tune of Rs266 crore.
