Equities seen lower on weak global cues(The Economic Times 22th Feb 2008)Weak global cues are likely to weigh down Indian equities on Friday. US stocks tumbled on Thursday, driven lower by recession fears and a sharp pullback in crude oil prices that hurt shares of energy companies. The Dow Jones Industrial Average tumbled 1.15 per cent, Standard & Poor's 500 Index slid 1.29 per cent and Nasdaq Composite Index dropped 1.17 per cent. Oil prices slipped 1.5 per cent to $98.23 a barrel after the Energy Department said crude inventories climbed by 4.2 million barrels to the highest since November. Equities across Asia plummeted on US recession concerns pulling Japan's Nikkei down 1.93 per cent, Hang Seng down 2.03 per cent and Straits Times down 1.02 per cent. The Indian rupee may ease on Friday as losses in US and Asian stock markets are likely to heighten concerns that foreigners will withdraw funds, removing a key support for the currency. On Wednesday, Bombay Stock Exchange's Sensex closed at 17,734.68, up 117.08 points or 0.66 per cent from Wednesday's close after touching a high of 17,911 and low of 17,482.31 intraday. National Stock Exchange's Nifty ended at 5,191.80, up 37.35 points. The index swung between a high of 5241.35 and low of 5120.05 during the day. More
Tech view: Week end blues likely (Business Standard 22th Feb 2008)The markets opened on an optimistic note and ended with gains after a see-saw pattern as the impending expiry of the February derivatives series witnessed bear covering.The buying impetus was aided by gains in the overseas markets, which prompted profit booking by the short term bears.The traded volumes were marginally changed over the previous session and the market breadth was slightly positive as the BSE figures were 1,459 : 1,251.The indices have closed at upper end of the intraday range as the buying momentum persisted till the fag end of the session. Historically, pre-expiry sessions tend to have a short covering bias, especially in months where declines have been substantial.The 5,060 level which was advocated as a support has held and the 5,235 level suggested as a resistance was more or less accurate as the bulls retraced from that point.The intraday range for Friday will be 5,120 on declines and 5,270 on advances. Watch the traded volumes above 5,250, which will be a litmus test for bulls in the near term. More
Asian stocks dogged by signs of US recession (The Economic Times 22th Feb 2008)Fresh evidence that the US economy is in recession sent Asian stocks lower on Friday, with Tokyo shedding almost 2 per cent as investors took shelter in the relative safety of government debt. Concern that the world's top economy was seriously flagging dragged crude oil prices further from a record high above $101 a barrel and weighed shares in energy companies, such as Australia's Woodside Petroleum Attention remained fixed on the US economy after the weakest reading on mid-Atlantic manufacturing since 2001 provided yet more evidence the US economy was in recession. "People have just gone into the fear mode," said Juliana Roadley, market analyst at CommSec in Sydney. "The data coming out is a lot worse than people had expected. There is a lot of research to be done over the next few months on the mortgage area and that's worrisome as well." Japan's benchmark Nikkei shed 1.9 per cent, handing back most of Thursday's gain, while MSCI's index of other Asian stocks fell 1 per cent by 0223 GMT. For months investors have feared that the United States is in or is sliding into recession and any equity rally has quickly been sapped by bad news, often that another big bank has announced a credit-related writedown. Only this week Credit Suisse revealed a $2.85 billion writedown and Societe Generale, rocked by a huge rogue trading scandal, said there may be more to come. Stock markets across Asia fell, with Australia's benchmark, Shanghai's Composite and South Korea's main index all losing more than 1 per cent. More
Dow drops 143pts; ADRs end mixed (Business Standard 22th Feb 2008)The US stocks ended on a weak note yesterday. The Dow Jones industrial average shed 143 points at 12,284. The Nasdaq dropped 27 points to 2,300.Indian ADRs, however, ended on a mixed note. Patni Computers surged 2.5% to $13.15, and Genpact gained 2% at $14.23. Sterlite and Wipro advanced 1.5% each to $20.29 and $11.75, respectively. Infosys was up over 1% at $41.70.On the other hand, MTNL plunged over 4% to $6, and ICICI Bank tumbled over 3% to $56.47. More
Tech view: Week end blues likely (Business Standard 22th Feb 2008)The markets opened on an optimistic note and ended with gains after a see-saw pattern as the impending expiry of the February derivatives series witnessed bear covering.The buying impetus was aided by gains in the overseas markets, which prompted profit booking by the short term bears.The traded volumes were marginally changed over the previous session and the market breadth was slightly positive as the BSE figures were 1,459 : 1,251.The indices have closed at upper end of the intraday range as the buying momentum persisted till the fag end of the session. Historically, pre-expiry sessions tend to have a short covering bias, especially in months where declines have been substantial.The 5,060 level which was advocated as a support has held and the 5,235 level suggested as a resistance was more or less accurate as the bulls retraced from that point.The intraday range for Friday will be 5,120 on declines and 5,270 on advances. Watch the traded volumes above 5,250, which will be a litmus test for bulls in the near term. More
Asian stocks dogged by signs of US recession (The Economic Times 22th Feb 2008)Fresh evidence that the US economy is in recession sent Asian stocks lower on Friday, with Tokyo shedding almost 2 per cent as investors took shelter in the relative safety of government debt. Concern that the world's top economy was seriously flagging dragged crude oil prices further from a record high above $101 a barrel and weighed shares in energy companies, such as Australia's Woodside Petroleum Attention remained fixed on the US economy after the weakest reading on mid-Atlantic manufacturing since 2001 provided yet more evidence the US economy was in recession. "People have just gone into the fear mode," said Juliana Roadley, market analyst at CommSec in Sydney. "The data coming out is a lot worse than people had expected. There is a lot of research to be done over the next few months on the mortgage area and that's worrisome as well." Japan's benchmark Nikkei shed 1.9 per cent, handing back most of Thursday's gain, while MSCI's index of other Asian stocks fell 1 per cent by 0223 GMT. For months investors have feared that the United States is in or is sliding into recession and any equity rally has quickly been sapped by bad news, often that another big bank has announced a credit-related writedown. Only this week Credit Suisse revealed a $2.85 billion writedown and Societe Generale, rocked by a huge rogue trading scandal, said there may be more to come. Stock markets across Asia fell, with Australia's benchmark, Shanghai's Composite and South Korea's main index all losing more than 1 per cent. More
Dow drops 143pts; ADRs end mixed (Business Standard 22th Feb 2008)The US stocks ended on a weak note yesterday. The Dow Jones industrial average shed 143 points at 12,284. The Nasdaq dropped 27 points to 2,300.Indian ADRs, however, ended on a mixed note. Patni Computers surged 2.5% to $13.15, and Genpact gained 2% at $14.23. Sterlite and Wipro advanced 1.5% each to $20.29 and $11.75, respectively. Infosys was up over 1% at $41.70.On the other hand, MTNL plunged over 4% to $6, and ICICI Bank tumbled over 3% to $56.47. More
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