The market is likely to slip further as a fall in overnight US indices and the ongoing Asian indices could weigh on the market sentiment.
Market may slide further on account of weak Asian markets in morning trades and overnight fall in the US markets. Political uncertainties and continued selling pressure may also drag the domestic indices further down. Key indices, the Nifty may get support at 4420 level and on the upside it could test higher levels at 4500. The Sensex has a likely support at 14,750 and may face resistance at 15,100.
US indices declined on Tuesday as worries about Lehman Brothers' ability to raise capital, and about the extent of AIG's mortgage-related losses, exacerbated broad recession fears. While the Dow Jones slipped 280 points at 11231, while the Nasdaq lost 60 points to close at 2210.
All the Indian ADRs fell in tune with the broader market. Rediff led the slump and tumbled 11.69% followed by HDFC Bank (down 7.61%), ICICI Bank (down 5.77%), Patni Computer (down 4.62%), Dr Reddy (down 4.31%) and VSNL (down 3.25%) while Infosys, Satyam, Wipro, Tata Motors and MTNL slipped by over 1-2% each.
Crude oil prices lost sharply as investors believed OPEC will keep production at current levels, and as Hurricane Ike lost strength over Cuba. With the Nymex light crude oil for October delivery moved down by $3.08 to close at $103.26 a barrel. In the commodity space, the Comex gold for December series lost $10.50 to settle at $792 a troy ounce.
Daily trend of FIIs / MF investment in equities
On September 08, 2008, FIIs were net buyers of stocks to the tune of Rs758.10 crore (purchases worth Rs2,3356.40 crore and sales of Rs2,598.40 crore).
