OUTLOOK FOR NOV 7
The market may extend last two days' fall that followed
an earlier strong rebound tracking weak Asian stocks. Asian
stocks fell sharply for a third day as layoffs and corporate
profit warnings piled up in the face of a rapidly slowing
global economy. Back home, an unexpected rise in inflation
pulled the Sensex down nearly 4% on Thursday, 6 November
2008, in a highly choppy trade. The rise in inflation shattered
hopes of further interest rate cuts by the Reserve Bank of
India. Inflation based on the wholesale price index rose
10.72% in the year through 25 October 2008, higher than
previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening
deals on Friday, 7 November 2008, on expectations that
losses in overseas markets would lead the stock market to
drop and spur foreigners to continue withdrawing their
investments. At 9:02 IST, the partially convertible rupee
was at 47.95/96 per dollar, compared to Thursday's close
of 47.66/69 per dollar.