Money Tree

GLOBAL MARKETS

US Markets

The US market plunged on Tuesday after American Home Mortgage Investment Corp. said it may have to liquidate assets raising worries about the deteriorating credit market conditions. The markets shed more than 1 percent in the day’s trade.

Dow Jones closed at 13211.99 down 146.32 points or 1.10 percent.
Nasdaq Composite closed at 2546.27 down 37.01 points or 1.43 percent .

Europian Markets

The Europian markets rallied more than 1.5 percent on Tuesday.

FTSE (UK) closed at 6360.10 up 154.00 points or 2.48%. .
DAX (Germany) closed at 7584.14 up 127.83 points or 1.71%
CAC (France) closed at 5751.08 up 104.72 points or 1.85%.

Asian Markets

The Asian markets, except Nikkei, also closed in the green on Tuesday.

NIKKEI(JAPAN) closed at 17248.89 down 40.41 points.
HANG SENG (HONG KONG) closed at 23184.94 up 445.04 points.
KOSPI (SOUTH KOREA) closed at 1933.27 up 26.56 points. .
STRAITS TIMES (SINGAPORE) closed at 3547.66 up 21.37 points.
Composite Index (CHINA) Closed at 4471.03 up 30.263 points.
SENSEX (INDIA) closed at 15550.99 up 290.08 points.
NIFTY (INDIA) closed at 4528.85 up 88.8 points.

FOREX

USD/ INR 40.37
EUR/ USD 01.37
USD/ JPY 119.345

GOLD

8760/ 10gm

CRUDE

$76.83/ Bb

Today’s Market outlook

Our markets rallied in the late hours yesterday on the back of some short covering. On the credit policy front the CRR was hiked by 50 basis points to 7 percent now and key lending rates have been kept unchanged, the focus of RBI is on absorbing excess liquidity created by influx of foreign funds, the inflation target is maintained at below 5 percent. Yesterday the US markets again plunged and the whole of Asia has opened in deep red today with markets down from 2 to 3 percent. We expect a gap down opening in the morning on the back of weak global cues but during the day the markets may rebound and recover their morning losses.