Stocks set to plunge as markets across the globe melt down Stocks are set to crash in the early morning trade as the rejection of the bail out plan wiped out nearly 1 trillion dollars in market value on Wall Street. All the global markets are witnessing a sell off as investors are fleeing away from the markets. We see the market plunging by nearly 4 to 5 percent in the open, but expect the markets to pull back a bit towards the end of the day.
Congress called Wall Street's bluff Monday, and investors, savers, retirees and employees around the world lost their shirts.While groups of politicians bickered like schoolchildren over the failure of the House of Representatives to pass Treasury Secretary Henry Paulson's $700 billion bailout plan, the S&P 500 Index plunged to its worst day since the week of the 1987 stock-market crash, wiping out more than $700 billion in the index's market value. Asian markets tumbled early Tuesday. The Nikkei 225 Average slumped 4.8% to 11,178.34 and the Topix index skidded 5.1% to 1,070.20. Australia's S&P/ASX 200 index lost 2.8% to 4,674.50 and New Zealand's NZX 50 index gave up 4.3% to 3,052.81. South Korea's Kospi fell 4.9% to 1,385.79. Oil prices plunged more than 10 U.S. dollars Monday as the veto of the bailout plan exacerbated worries that economic downturn would further cut oil demand.Light, sweet crude for November delivery slid 10.52 dollars to settle at 96.37 dollars a barrel on the New York Mercantile Exchange. Meanwhile the impact of the global melt down might be less severe on the indian markets as we have seen a big fall yesterday in anticipation of a crash in the global markets. An effective strategy for the investors in the markets is to stay away from intraday and short term trades and concentrate on accumulating stocks in defensive sectors like Pharma. Overall a painful day, but the fall will not be steep. Suitable stocks for intraday today: <RELIANCE, ICICIBANK, BHARTIARTL, HDFC, BHEL, RELINFRA, DLF, SBIN, HDFCBANK, STER> Market Close Box: BSE Sensex 12595.75 -506.43 NSE Nifty 3850.05 -135.20 USD Rs.46.94 Oil Nymex $96.37 B.Karthick Research Analyst. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
