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Pre-Market—Indian markets seen opening lower Analysis for May 24, 2013

By Religare
|

Indian benchmark indices are likely to witness a weak opening today and extend the decline, hit by worries over a possible end to US economic stimulus measures. The minutes of Fed meeting suggest that some members didn"t want to continue quantitative easing which sparked a sell-off in all the Asian markets on Thursday.

Sensex and Nifty, which slipped below their psychological 20,000 and 6,000 levels on Thursday, are expected to continue the downfall on Friday. Asian markets also witnessed weak opening today except for the Japan"s Nikkei which rebounded after falling 7 per cent yesterday on China"s growth concerns. Japanese markets fell around 7 per cent yesterday amid US stimulus concerns, China"s growth worries, and some apprehensions from Tokyo that the huge liquidity pumped in by the Japanese government bonds (JGB) might also be a temporary affair.

 

On Thursday, US markets were also under pressure initially but later on they recovered to end marginally lower, as rally in shares of HP helped investors.

Indian investors saw their wealth eroding by Rs 1 lakh crore on Thursday amid steep fall in shares, especially banking stocks, with 30-share Sensex falling nearly 400 points. The BSE SENSEX closed at 19,674.33, down by 387.91 points or by 1.93 per cent and the NSE Nifty ended at 5,967.05, down by 127.45 points or by 2.09 per cent.

Poor quarterly numbers from SBI also added to the pressure on markets on Thursday and the banking stocks are expected to remain under pressure today as well.

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Story first published: Friday, May 24, 2013, 9:20 [IST]
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