Markets set to crash on global recession fears

Negative factors coming from the overseas markets may pull the Indian stock markets down drastically in the opening trade. A heavy sell-off is expected today.

Headlines for the day:

Bankers to strike today

Cabinet Committee on Economic Affairs okays Rs1200 cr for AI

IDFC to invest 80 crore in Green Infra



Major corporate action

Carborundum Universal board to consider sub-division
Results: Aban Offshore, Bosch, Cipla, Great Eastern Shipping Co., Jain Irrigation Systems, Ranbaxy Laboratories
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Indian indices

The Indian markets have remained under bear grip throughout the week till now, with the Sensex losing almost 500 points from the last Friday’s closing (July 29, 2011).

The markets may have a bad start today, extending its losing streak for the fourth consecutive session, on concern that the US economic recovery is petering out.

The investors may remain sideways owing to the mounting evidence that a slowdown in global growth is not just a temporary soft patch, but a more substantive loss of momentum. With, FIIs in a selling mode may further worry investors.

Companies scheduled to report quarterly results today include Aban Offshore, Bosch, Cipla, Great Eastern Shipping Co., Jain Irrigation Systems, Ranbaxy Laboratories; stocks will be eyed.

Daily trend of FII/MF investment in equities

The FIIs have sold Indian stocks worth a net of Rs801.10 crore on August 04, 2011 as compared to the net sell of Rs82.70 crore on August 03, 2011. The domestic investors have bought Indian shares worth a net of Rs23.40 crore on August 03, 2011. The data is as per the SEBI website.

Global signals

The European markets tumbled on Thursday, with a key index dropping to a level not seen since mid-2009, as investors dumped equities across the board, worrying about sluggish global growth and Italy's debt woes.

The US markets plunged, driving the Standard & Poor's 500 Index to the biggest nine-day decline since the equity bull market began in March 2009, on intensifying fears that the global economy is weakening.

The Asian markets were trading with deep cuts following heavy losses on the Wall Street. SGX Nifty was trading 80 lower, pointing for a weak start on the Indian bourses.

Commodity cues

Crude oil prices tumbled as much as 6% on Thursday, with US crude crashing through technical support to its lowest since February as mounting fears of a stalled economy set off a global race from riskier assets.