MUMBAI: Equities are likely to open lower on Thursday tracking weak
overseas cues. Mounting worries over the health of the US economy
rattled investors across the world and record high oil prices
continued to keep sentiment jittery.
US stocks tumbled on Wednesday, posting their biggest losses in two
weeks, amid fears the US economy faces stagflation after the Federal
Reserve slashed its economic growth forecasts while raising estimates
for inflation.
The Dow fell 227.49, or 1.77 per cent, to 12,601.19, after falling
nearly 200 points on Tuesday. Broader stock indicators also stumbled.
The Standard & Poor's 500 index fell 22.69, or 1.61 percent, to
1,390.71, while the Nasdaq composite index fell 43.99, or 1.77
percent, to 2,456.09.
Further fueling market concerns, oil prices surged further into
uncharted territory, soaring over $4 a gallon, or 3.25 per cent, to a
record high close at $133.17, after US government report showed a
surprise drop in crude stockpiles.
Asian markets were trading weak following Wall Street cues. The Nikkei
slumped 2 per cent, Hang Seng fell 2.61 per cent and Straits Times
declined 1.45 per cent.
Back home, on Wednesday, saddled with weak overseas cues, the market
opened on a nervous note, slipped in the early part of the day, only
to stage a smart recovery in post-noon trading.
Bombay Stock Exchange's Sensex closed flat at 17,243.16, up 12.98
points or 0.08 per cent. The 30-share index bounced back 200 points
from day's low of 17,041.63 to touch an intra-day high of 17,293.34.
National Stock Exchange's Nifty advanced 0.25 per cent or 12.70 points
to close at 5117.65. The index touched a high of 5,135.55 and low of
5,048.70.
Source : Economic Times
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