Stocks to open lower on weak global cues; IIP data eyed

MUMBAI: Stocks are expected to extend losses Wednesday tracking weak cues from global shores.

Investors
will look forward to crucial IIP data which is scheduled to be announced around noon. Improvement in industrial growth may provide some positive sentimental impact. Industrial growth is expected to have risen 5-7 per cent in September from the 13-year low of 1.3 per cent in August.

US stocks slid on Tuesday as production cuts at aluminum maker Alcoa, a dismal outlook from Tyco International and weak results at Starbucks underscored fears the economic slowdown will deepen.

The Dow Jones Industrial Average fell 276.62 points, or 3.12 per cent, to 8,593.92. The Standard & Poor's 500 Index slid 31.34 points, or 3.41 per cent, to 887.87 and the

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Nasdaq Composite Index lost 49.85 points, or 3.09 per cent, to 1,566.89.

Asian markets were trading lower with a string of dismal US company news fanning worries about a global economic slowdown. The Nikkei shed 0.5 per cent, Topix fell 0.8 per cent, Hang Seng lost 2.49 per cent and Straits Times declined 1.2 per cent.

Back home, Bombay Stock Exchange's Sensex tumbled 696.47 points or 6.61 per cent to end at 9,839.69. The 30-share index touched an intra-day low of 9,799.45 after opening at a high of 10,405.39. National Stock Exchange's Nifty ended at 2938.65, down 6.66 per cent or 209.6 points. The 50-share index hit a low of 2,919.45 from high of 3,147.20 in the day.

"Intraday, pivot at 2945 points needs to be sustained for any recovery. Resistance is at 3025, 3084 and 3130 points while crucial support in declines is at 2848 and 2790 points. The Nifty has given an alarm after breaking 3000 points. Bulls have to gear up quickly otherwise the bear haunt continues," said Religare Securities in a note.

Source: economictimes.indiatimes.com