Equities seen lower on weak global cues; Budget eyed (The Economic Times 29th Feb 2008)Equities are seen range bound Friday as investors await Finance Minister P Chidambaram’s presentation of the Union Budget for cues that could lift sentiment. This year’s Budget being the last from the UPA government ahead of the general elections in 2009, is largely expected to be a populist one.
“Once the finance minister speaks today, we will get a clearer idea of things to follow which will enable us to take a directional call on the market. But even if there are negative statements, having entered the March series quite light, losses will be limited," said DD Sharma, vice president - research, at AnandRathi Securities.
"The finance minister should move toward further liberalization with regards to foreign direct investment and other regulatory reforms. But, this being the last Budget the UPA presents ahead of general elections, the FM is likely to lend financial support more to the farmers and aam aadmi," Sharma added.
Meanwhile, a weak set of global cues set the stage for a weak opening for India. US stocks ended lower overnight as data on rising jobless claims disappointed investors and the Federal Reserve chairman Ben Bernanke’s warning that the ailing housing market could cause small-bank failures.
The Dow Jones Industrial Average slid 112.10 points, or 0.88 per cent, to end at 12,582.18, the Standard & Poor's 500 Index fell 12.34 points, or 0.89 per cent, to 1,367.68 and the Nasdaq Composite Index lost 22.21 points, or 0.94 per cent, to 2,331.57. Equities across Asia mirrored US markets as Japan’s Nikkei slid 2.54 per cent, Hong Kong’s Hang Seng shed 1.53 per cent and Singapore’s Straits Times declined 1.64 per cent.
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“Once the finance minister speaks today, we will get a clearer idea of things to follow which will enable us to take a directional call on the market. But even if there are negative statements, having entered the March series quite light, losses will be limited," said DD Sharma, vice president - research, at AnandRathi Securities.
"The finance minister should move toward further liberalization with regards to foreign direct investment and other regulatory reforms. But, this being the last Budget the UPA presents ahead of general elections, the FM is likely to lend financial support more to the farmers and aam aadmi," Sharma added.
Meanwhile, a weak set of global cues set the stage for a weak opening for India. US stocks ended lower overnight as data on rising jobless claims disappointed investors and the Federal Reserve chairman Ben Bernanke’s warning that the ailing housing market could cause small-bank failures.
The Dow Jones Industrial Average slid 112.10 points, or 0.88 per cent, to end at 12,582.18, the Standard & Poor's 500 Index fell 12.34 points, or 0.89 per cent, to 1,367.68 and the Nasdaq Composite Index lost 22.21 points, or 0.94 per cent, to 2,331.57. Equities across Asia mirrored US markets as Japan’s Nikkei slid 2.54 per cent, Hong Kong’s Hang Seng shed 1.53 per cent and Singapore’s Straits Times declined 1.64 per cent.
More
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