Crude oil new high makes market downtrend

Indian Stock Markets have slipped sharply in the opening trades on back of heavy overnight losses in the US markets and a weak start to the equity markets across Asia. Further the sentiments have also dampened as US light crude oil for July delivery set a closing record of $133.17 in New York Mercantile Exchange trading, up more than US$4 per barrel and then proceeded to march to another record intraday high of $134.10 in electronic trading after the settlement.
Among the 30-scripts of Sensex, 27 stocks are in red and only 3 stocks are in green. Reliance Industries, ICICI Bank, L&T and HDFC Bank are among the major laggards. At 10:00 am (IST), the BSE 30-share Sensex slipped 193 points at 17,049 and NSE Nifty was down 49 points at 5,068.
Asian stocks fell for a third day today, extending a global slump, after oil rose to a record and the Federal Reserve signaled it is done cutting interest rates.
The MSCI Asia Pacific Index fell 1% to 150.49 as of 11:34 a.m. in Tokyo, with almost four stocks dropping for each that climbed. All 10 industry groups declined. All of Asia's benchmark indexes retreated, with Japan's Nikkei 225 Stock Average declining 1.2% to 13,762.27.
US stocks sank on Wednesday as crude oil surged further on a surprising weakness in government's weekly fuel supply report. Sentiment also got hit after the minutes from the Federal Reserve's last meeting showed policy makers were reluctant to cut rates.
The S&P 500 slumped 22.69 points, or 1.6%, to 1,390.71. The Dow Jones Industrial Average slid 227.49 points, or 1.8%, to 12,601.19. The Nasdaq Composite Index dived 43.99 points, or 1.8%, to 2,448.27.
Stocks in Europe fell on record crude prices, resulting in sharp losses for automakers and airlines. The pan-European Dow Jones Stoxx 600 index fell 0.9% to 323.16 as crude-oil prices run up as high as $132.08 a barrel. The UK's FTSE 100 edged up 0.1% to 6,198.10, while the German DAX 30 fell 1.1% to 7,040.83 and the French CAC-40 dropped 0.5% to 5,027.55.

In the emerging markets, the Bovespa in Brazil slid 1.7% to 72,294 while the IPC index in Mexico was down 1.3% at 31,126. The RTS index in Russia gained 0.6% to 2467 while the ISE National 30 index in Turkey fell 0.75% to 50,360.

2 comments: Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.

Now once again as on 02-June-08 around 11.15AM,market is trying to become bit bullish but still we cant rule out profit booking from every rise. Still we suggest everyone to remember this is Indian stock market
so watch your every step. Avoid going Long until Nifty crosses 5050 mark and avoid going short until nifty breaks 4820. Till then enjoy the consolidation phase and prefer to do intraday trading only.




aditi said...

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