WORLD EQUITIES TUMBLE ON GLOBAL GROWTH, US INTEREST RATE CONCERNS

WORLD EQUITIES TUMBLE ON GLOBAL GROWTH, US INTEREST RATE CONCERNS

WORLD MARKETS                             

After plunging about 2.5%-3.5% on persisting global growth concerns, US indices recouped some of the losses in last hour of trade to end with cuts of 1.1%-1.8%. Financials and materials were the biggest drags on S & P 500 while Energy rose in late-afternoon trading, and closed as the only advancing sector.

Nymex oil closed $1.20 or 3.9% lower at $29.69 a barrel, after a meeting between Saudi Arabia and Venezuela at the weekend ended with few signs of coordination to tackle the global supply glut. Brent fell 99 cents or 2.8% to $33.09. Gold surged 3.5% to close at $1798 an ounce and went above $1200 for the first time since June.

U.S. Treasury rallied with the benchmark 10-year note yield falling to 1.76%, while two-year yields traded at 0.67%.

European markets tumbled 2.7%-4.7%

AT HOME

After trading in about half a percent range for most of the day, benchmark indices nosedived in last hour of trade to end with deep cuts of a percent and third. Sensex settled at 24287, down 330 points while lost 102 points to finish at 7387.  BSE IT and Teck indices tumbled 2% and 1.6% respectively, becoming top losers among the sectoral indices while Telecom and Realty indices gained 0.8% and 0.4% respectively.

FIIs net sold stocks and index futures worth Rs 85 cr and 213 cr respectively but net bought stock futures worth Rs 439 cr. DIIs were net buyers to the tune of Rs 279 cr.

Rupee fell 30 paise to end at 67.935/$.

India's third quarter GDP came in at 7.3%, compared to 7.4% in the second quarter and 6.6% in Q3 last year. The full year GDP forecast has been revised to 7.6% from 7.2%. The Q1FY16 growth has been revised to 7.6% from 7.0%, while Q2FY16 has been revised to 7.7% from 7.4%. The gross value added (GVA) is seen at 7.3%, compared to 7.1% in the previous year.

Cognizant fell more than 7% after company's revenue growth forecast for January-March quarter at 11.34% y-o-y, fell short of expectation and would be the lowest in 14 years.

OUTLOOK

Today morning Nikkei has opened with sharp cuts of more than 4% as the Yen has surged to the strongest level in 15 months which is not good news for Japanese exports. SGX Nifty is suggesting about 50 points lower start for our market.

In yesterday's report we had mentioned that a crossover of 7503, the top made on Friday, would confirm a buy on the hourly chart and can take Nifty to around 7600.

The benchmark touched a high of 7512 but saw a steep sell-off in last hour to end way below at 7387 and is set to open with a gap down today.

7350, the bottom made last week, is the immediate support, a sustained trading below which will open up the possibility of the retest of the 7240 bottom made in January.

Hindalco, PNB and Dr Reddy will report their quarterly earnings today.