Andrew L Dcunha
Mumbai, Aug 24: The Indian stock market lost ground over the last 3 hours of trade despite positive European cues due to selling pressure in the heavyweights. After a flat opening, the markets the Sensex remained in the red for most part of the day. BSE index slipped 213 points (1.29%) to end at 16285 points. Nifty closed 60 points lower at 4,889 points.
Global investors will be looking towards the Federal Reserve's monetary action, where it is expected that Ben Bernanke will introduce some form stimulus to bolster the ailing economy. While another round of stimulus by Federal Reserve may bring foreign institutional flows back to India, macro-economic conditions continue remain a concern.
Global sovereign-debt concerns shifted to Japan Wednesday, as credit-rating firm Moody’s Investors Service downgraded the nation’s credit rating one notch, saying Tokyo needs to begin turning its debt situation around. Moody’s lowered Japan’s rating to Aa3 from Aa2, citing large deficits and the buildup in government debt since the global recession in 2009 Asian shares fell on Wednesday .Hong Kong’s Hang Seng Index /fell 2.1%, China’s Shanghai Composite shed 0.5% and Taiwan’s Taiex ended 0.6% lower. Japan’s Nikkei ended 1.1. South Korea’s Kospi fell 1.2% .
Gold slips
Amid profit-booking at record levels by speculators and a weak trend overseas, gold futures slipped by 0.53% from their record level to Rs 27,450 per 10 grams today.
At the Multi Commodity Exchange, gold for delivery in October fell by Rs 147, or 0.53%, to Rs 27,450 per 10 grams. However, a weaker rupee kept the downside limited. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars. The Indian rupee weakened on Wednesday dragged by negative local shares, euro's retreat and dollar demand from oil companies for month-end import payments.
Andrew L D Cunha, Managing Director, WinWin Fin Advisory Pvt. Ltd. Mangalore. Email: finadvisoryltd@yahoo.com.
