MAJOR HEADLINE:
Food inflation rises to 8.69%
Jobless claims data will be released in the US tonight(10.12.2010).
Bears were charged up all through the day and dragged the Indian markets to end today's session deep in red. A massive sell-off was seen across the board as investors pressed the panic button citing reasons like political instability and series of scams. Fears of foreign fund withdrawals in the absence of any positive trigger also led the Indian markets fall drastically.
The key benchmark indices tumbled more than 2% in a broad based sell-off, underperforming mostly higher global stocks, as data showing heavy selling by foreign funds on Wednesday, 8 December 2010, dampened sentiments. The market extended last two days' losses. Index heavyweight Reliance Industries (RIL) slumped more than 3%. Investors dumped small-cap and mid-cap shares as media reports of possible price rigging in select stocks, coming close on the heels of a Sebi action last week against four firms on allegations of price manipulation, rattled investors.
The BSE 30-share Sensex was down 454.12 points or 2.31%, off close to 530 points from the day's high and up close to 80 points from the day's low.
Intraday volatility was high. NSE's volatility index, India VIX, jumped 10.62% to to 22.60.
Foreign institutional investors (FIIs) dumped shares worth net Rs 1297.80 crore on Wednesday, 8 December 2010, much higher than an outflow of Rs 419.70 crore on Tuesday, 7 December 2010. The Sensex had lost 1.19% on Wednesday.
European shares hit a 26-month highs on Thursday on optimism the US tax cuts would boost consumption, with technology stocks boosted after ASML lifted its booking forecast. The key benchmark indices in France and UK rose by between 0.28% to 0.58%. But, Germany's DAX fell 0.1%, reversing initial gains.
India’s 10-year bonds dropped for a second day before the central bank buys back Rs120 billion ($2.7 billion) of securities to ease a cash crunch in the banking system.
FOR TODAY: SGX Nifty is trading at 5767, down 25 points indicate that Nifty will open in red around 5760-5765.
A SMALL BREAK IS EXPECTED. HOWEVER, WATCH FOR 5700 LEVEL. IF BREAKS, PROBABLY TSUNAMI IN INDIAN STOCK MARKET WILL COME. IF AND ONLY IF, CLOSED ABOVE 5800 LEVEL, WE MAY SEE 6000 AGAIN NEXT WEEK.
NOTE: ALWAYS TRADE WITH STRICT STOPLOSS.
