Today, bulls chose to overlook positive news such as the correction in crude oil prices, moderation in inflation and improved IIP numbers for July 2008. IT stocks fell sharply following reports that Infosys' Q2 results may be hurt due to a rise in US$ against the European currencies.
Most factors point towards a negative opening today. Crude falling below US$100 ideally should be music to the ears of bulls. However, the situation has worsened with the recent news flow in the global financial markets, especially after potential rescue buyers for Lehman Bros walked away. With more speculation emerging about financial troubles in few other global banks, the mood is pessimistic than ever before.
After a lower opening, the usual short-term pullback may be seen. However, no aggressive buying should be undertaken till there is some stability in the global markets.
Most factors point towards a negative opening today. Crude falling below US$100 ideally should be music to the ears of bulls. However, the situation has worsened with the recent news flow in the global financial markets, especially after potential rescue buyers for Lehman Bros walked away. With more speculation emerging about financial troubles in few other global banks, the mood is pessimistic than ever before.
After a lower opening, the usual short-term pullback may be seen. However, no aggressive buying should be undertaken till there is some stability in the global markets.
