Cautiousness is likely to prevail during the opening session at the bourses today, following mixed cues from global peers. US Markets trimmed losses after Fed Chairman Ben Bernanke offered a grim assessment of the US and global economy. His pledge to take further action, if necessary, to promote a recovery did little to sway investors. The Singapore Nifty Futures are almost unchanged at 4,780.
US stocks, in another day of sharp swings, closed significantly higher, despite clocking large losses through much of the day. By Tuesday's end investors ignored the S&P 500's early slide into bear territory and furiously bought back into stocks. The S&P 500 closed up 25 points, or 2.3%. The Dow Jones industrial average ended up 153 points, or 1.4%. The Nasdaq Composite edged 69 points higher, or 3% by the close.
In Europe, the FTSE, DAX and the CAC 40 slumped over 2.5% each after Moody’s downgraded Italy’s rating to A2 from AA2 with a negative outlook.
Markets across Asia are also trading on a weak note in Wednesday’s trade. The Nikkei stock average fell on
Wednesday, losing its grip on early gains as bank shares slipped and Fast Retailing Co skidded after posting disappointing sales figures. The index is down 70 points at 8,386. The Kospi is at 1,674, down 32 points.
Back home, on Tuesday, markets ended in the red on weak cues from Asian markets as selling continued in banking shares. The Sensex dropped to a low of 15,745 in late-noon trades and finally ended with losses of 286 points or 1.7% at 15,865. Nifty ended down 77 points at 4,772.
Technical analysts suggest that a pullback to 4,800-4,850 levels for the Nifty looks likely from current levels. Meanwhile, the underlying sentiment could remain cautious as investors are unlikely to extend their long positions ahead of a market holiday tomorrow.
The RBI has removed the restriction on foreign institutional investors purchasing the shares of Maruti Suzuki India, following the compliance of their prescribed investment limit in the company. This is expected to generate some investor interest at the counter.
Among individual stocks, SBI is likely to be in focus yet again after Moody’s yesterday downgraded the bank’s financial strength rating based on the banking entity's capital situation and deteriorating asset quality.
Karuturi Global, the Bangalore-based agri-commodities player, has said it has incurred a loss of $15 million due to flash floods in Ethiopia. The development can put the stock under some pressure in trade today.
Bharat Bharat Sanchar Nigam Ltd is also likely to be in the buzz after it sweetened its Voluntary Retirement Scheme by proposing to help set up an outsourcing cooperative for all employees who take the offer.
Other stocks to watch out for include NTPC, PVR Cinemas and Sugar stocks.