The local market is likely to see a cautions opening today on the back of negative global cues. The market will also watch the domestic economic indicators and earnings reports for further direction. The US markets closed in the red on lower-than-expected earnings report from Cisco. The Asian markets were mostly lower in early trade following a stalemate on currency and trade issues at the Group of Twenty (G20) meeting after China rejected suggestions that blame its exchange regime. The SGX Nifty was down 47 points at 6,190 compared to its previous close of 6,237 on Thursday.
The market witnessed a green opening on Thursday but selling pressure soon took the indices into the negative terrain on the back of global uncertainty. Even the easing of the weekly food inflation numbers brought no respite to the market, which was in a consolidation mood for the second day in a row. The indices slipped further on outflows by institutional investors, dragging the indices deeper into the red. The Sensex closed at 20,589, down 286.62 points (1.37%).The Nifty was down 81.45 points (1.30%) at 6,194.
The US market closed lower on Thursday following lower earnings reported by technology major Cisco. The company offered a weaker-than-expected sales forecast, citing lower demand from cable companies and government agencies. Besides, China rejecting suggestions to review its exchange regime at the G20 meet, also weighed on the investors.
The Dow declined 73.94 points (0.65%) to 11,283. The S&P 500 fell 5.17 points (0.42%) to 1,213. The Nasdaq shed 23.26 points (0.90%) to 2,555.
Markets in Asia, with the exception of the Seoul Composite, were lower in early trade after a report from the G20 meet indicated big banks might have to adhere to new capital regulations. The US market decline on Thursday and the ongoing sovereign debt issues in Europe also weighed on the investors.
The Shanghai Composite was down 1.59%, the Hang Seng was down 1.33%, the Jakarta Composite was down 0.29%, the KLSE Composite was down 0.44%, the Nikkei 225 was down 0.81%, Straits Times was down 0.75% and the Taiwan Weighted tumbled 1.01%. The SGX Nifty was down 47 points at 6,190 compared to its previous close of 6,237 on Thursday.
The Prime Minister's economic advisory panel on Thursday said the current shortage of money supply because of the festive season and public offers of PSUs will start easing within a month because of an expected increase in expenditure by the government and continued capital inflows.
Prime Minister's Economic Advisory Council Chairman C Rangarajan said there is liquidity shortage in the system and RBI's future actions will depend on the unfolding situation.
Earlier this week, the Reserve Bank of India had opened an additional window for banks to borrow and lend money to the central bank till the middle of December.
The RBI had said there has been a liquidity crunch in the system due to festive season demand and the Coal India IPO that sucked liquidity over Rs15,000 crore out of the systm.
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a Rs3 lakh penalty on Religare over the financial service provider's failure to conduct due diligence while processing some of its clients' accounts, reports PTI.
Mumbai Angels, an angel investment network, has invested about $400,000 in Mobiquest, a Noida-based mobile enterprise platform company.
Mobiquest provides mobile application services to its customer. Mumbai Angels has invested about $400,000 through preferential allotment.
Mobiquest will use the funds for its business development, expansion of team and product enhancement.