The Indian market, which resumes trading after a day’s holiday, is likely to witness a flat-to-positive opening today on fairly supportive global cues. The weekly food inflation data is expected to give further direction to the local bourses. The US markets closed steady on Wednesday with a mixed bias on economic concerns giving rise to speculations that the Federal Reserve will continue to support the economy. Markets in Asia were mostly higher on Thursday, recovering from recent losses as the European worries eased, however, investors were keeping an eye on the Chinese government’s next move. The SGX Nifty was up 3 points at 5,997 from its previous close of 5,994.
The Indian market opened with modest gains on Tuesday, defying the regional trend, but slipped into the red soon after touching the day's high. A feeble recovery attempt was seen in the mid-morning session, but an across-the-board sell-off by institutional investors pulled the indices deeper into negative terrain. However, sharp cuts in the Chinese market dragged the domestic indices to close below their crucial levels at the close. The Sensex closed 444.55 points (2.19%) down at 19,865, while the Nifty closed below the 6,000-mark at 5,988, down 132.90 points (2.17%).
The US market witnessed a flat close overnight as the day’s economic data fuelled speculations that the Fed would continue to prop the sagging economy. The consumer-price index rose 0.2% in October after a 0.1% rise the previous month, the Labor Department said in Washington. Excluding food and fuel, core costs increased 0.6% from October 2009, the smallest gain on record. A separate report showed housing starts fell to a 519,000 annual rate, the fewest since a record low reached in April 2009 and down 12% from a revised 588,000 in September that was less than previously estimated.
The Dow shaved 15.62 points (0.14%) to 11,008. The S&P 500 added 0.25 point (0.02%) at 1,178. The Nasdaq gained 6.17 points (0.25%) to 2,476.
Markets in Asia were trading mostly higher on Thursday as investors resorted to bargain-hunting after the recent losses in various markets. Besides, easing of debt concerns in Europe also brought some relief, however, economic concerns still remain.
The Shanghai Composite was up 0.42%, the Hang Seng surged 0.83%, the Nikkei 225 advanced 0.61%, Seoul Composite was up 0.74% and the Taiwan Weighted added 0.06%. On the other hand, the Jakarta Composite was down 0.10%, KLSE Composite fell 0.68% and Straits Times declined 0.25% in early trade. The SGX Nifty was up 3 points at 5,997 from its previous close of 5,994 on Wednesday
Private sector lender Axis Bank on Wednesday announced acquisition of investment banking arm of Enam Securities for Rs2,067 crore. The deal comprises investment banking unit, corporate advisory services and equity distribution arm of Enam Securities. Asset management company and insurance broking arm are not part of the deal.
Meanwhile, post independence, India lost a staggering $462 billion in illicit financial flows due to tax evasion, crime and corruption, a research and advocacy group said in a report on Wednesday.
The report, “The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008', released by Washington-based Global Financial Integrity (GFI) found that the faster rates of economic growth since economic reform started in 1991 led to a deterioration of income distribution which led to more illicit flows from the country.
According to the primary findings of the report from 1948 through 2008, India lost a total of $213 billion in illicit financial flows (or illegal capital flight).