A maturing market amid the mayhem
Market falls further, will Obama help?
Bears ruled the day as the Sensex slipped 2.4 percent to close at 9,100 levels. Fears that a deepening global economic crisis would trigger funds outflow weighed on sentiments as investors waited for cues form U.S. President-elect Barack Obama’s inaugural speech.
Index heavyweights Reliance Industries, Bharti Airtel and ICICI led the fall. Financial stocks took a beating after a record loss by Britain’s RBS.
TCS, which announced a multi-million dollar, multi-year deal with Italy’s Ducati Motor Holding, closed down nearly 1 percent.
There was some cheer for Satyam shareholders. The scrip ended 5.5 percent higher and was the top traded stock with volumes of 12.6 crore on the Mumbai market. One of the board members said on TV that the company has been approached by potential buyers.
It will probably not be too optimistic to expect another RBI rate cut soon, as Trade Minister Kamal Nath today said job losses at export-orientated firms are a concern and the government is considering steps to minimise the pain. Add to this Planning Commission deputy chairman Montek Singh Ahluwalia comment that inflation is now at normal and reasonable levels.
However, for now the focus remains on Obama who takes over as the U.S president today. Do you think the U.S. administration will announce another stimulus package to boost its economy? Will the new government help boost investor sentiments?