Thursday, June 19, 2008

Post Market Commentary- June 19, 2008

Market extends losses on weak Asian equities

The market succumbed to selling pressure for the second consecutive day today. Political concerns and weak Asian markets weighed on the investor sentiments. Banking, realty and capital goods stocks were hurt the most in today’s trade. All the sectoral indices on BSE ended in red.

As per provisional data, foreign funds today, 19 June 2008, sold shares worth a net Rs 598.36 crore. Domestic funds bought shares worth a net Rs 141.07 crore.

Political worries continued to weight on the market sentiment for a second day in a row. The postponement of a key meeting between the government and its communist allies on the proposed nuclear deal between US and India keeps the future of the deal uncertain. Talks were set to take place Wednesday, 18 June 2008, in New Delhi, but Communist leaders say the meeting will now take place on 25 June 2008. The delay comes as Left wing parties’ reffirm their opposition to the agreement, saying it undermines India's independent foreign policy and nuclear weapons program. As per reports, CPM, a key left party, may be working on a plan to pull out support to the Congress-led UPA government at the Centre.

The 30-share BSE Sensex lost 334.32 points or 2.17% at 15,087.99. The index shed 370.65 points at the day’s low of 15,051.66 hit in the mid-afternoon trade.

S&P CNX Nifty was down 78.15 points or 1.71% at 4504.25.

Oil fell on Thursday, 19 June 2008, as supply concerns in Nigeria eased after the country's oil ministry prevented a potentially crippling strike by workers at Chevron. But falling US oil stocks and comments from the White House that Saudi Arabia was unlikely to raise output in the near term supported prices, which have climbed 40% this year. US crude fell 73 cents to $135.95 a barrel, after settling up $2.67 at $136.68 a day ago on the Nigerian worries.

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