Post-Market Commentary- Tuesday, July 15, 2008

Bears on a rampage as Sensex tanks 654 points
The key benchmark indices collapsed under the combined weight of weak global markets and domestic political uncertainty. The BSE Sensex today hit its lowest level in more than 15 months. Shares from banking, capital goods and metal sectors collapsed. Ranbaxy Labs plunged on high volumes for the second straight day. All the sectoral indices on BSE posted losses. The market breadth was weak.
Fears over the solvency of major Western banks rattled stocks in Asia and Europe after the US Federal Reserve and Treasury Department mounted a rescue plan to help support top mortgage lenders Fannie Mae and Freddie Mac following the sharp fall last week in their stock prices. On top of the troubles at Fannie and Freddie, two pillars of the US mortgage system, US regulators seized mortgage lender IndyMac Bancorp Inc late last week following withdrawals by panicked clients.
In Europe key benchmark indices in UK, Germany and France were down by between 1.45% and 1.93%. In Asia, key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were down by between 2.11% and 4.51%.
As per provisional data, foreign funds sold shares worth a net Rs 702.70 crore while domestic funds bought shares worth a net Rs 283.40 crore today, 15 July 2008.
The 30-share BSE Sensex plunged 654.32 points or 4.91% to 12,676.19.

S&P CNX Nifty tumbled 178.60 points or 4.42% at 3861.10.

Fitch Ratings today, 15 July 2008, lowered India's domestic rating outlook to negative from stable due to the central government's worsening fiscal position. Fitch has maintained the country's BBB-minus rating for both its local currency rating and its foreign currency rating.
Oil prices hovered around $145 per barrel today, 15 July 2008