Local equity markets are witnessing intense selling pressure from across all sectors on back of weak global cues. All Asian markets are trading in the negative terrain with Shanghai Composite declining by more than 4% and Jakarta Composite shedding around 3%. Moreover, most of the other Asian indices declined by more than one percentage point on the US SEC’s (Securities and Exchange Commission) fraud charges against Goldman Sachs. Back home, all sectors in the broader indices are trading in the red with Metal segment losing around 2.3%, followed by Oil & Gas, Power, Auto and Realty that also lost more than one percentage point. Adding to woes is the Downgrade of Indian Equities by Morgan Stanley to EqualWeight.
Coupled with the global events, RBI’s looming liquidity tightening measures are also buzzing round the corners. Speculations are rife that the apex bank could resort to a hike of 25-50 basis points in its policy rates. The local markets are looking forward to the opening in European markets to take further cues. Looking at the intensity of the fraud charges against the global investment banker, a positive opening in the European markets seems to be very bleak.
The steel ministry in this wake has called a meeting of the primary and major secondary steel producers to discuss the reasons behind such a sharp increase in prices. The ministry understands that another round of price hike is imminent and therefore will be pressing the steel-makers to defer any further increase in prices for now.
All the Asian markets are trading in the negative terrain. Shanghai Composite declined 4.11%, Hang Seng tumbled 1.60%, Jakarta Composite contracted 1.58%, KLSE Composite shed 0.72%, Nikkei 225 decreased 1.74%, Straits Times slipped 1.93%, Seoul Composite dipped 1.68% and Taiwan Weighted dropped 3.17%.