Indian Weekly Market Update October 2 2009
The release of dismal employment data from the US triggered selling by disappointed investors across the globe. US Labor Department reported a loss of 263,000 jobs in September against a median estimate of 175,000 jobs. The unemployment rate climbed to 9.8 percent in September, the highest since 1983. Furthermore, orders placed with US factories unexpectedly fell 0.8 percent in August after increasing 1.4 percent in July. Negative news emanated from the Eurozone as well. Unemployment in the 16-member Eurozone climbed to 9.6 percent in August from 9.5 percent in July as companies continued to cut jobs. A slew of bad news from major economies led to widespread pessimism among investors pushing the Dow Jones Industrial Average (DJIA) and FTSE 100 down 1.84 percent each for the week ended October 2.
Asian markets ended the week on a negative note, with five of the seven major indices closing in the red for the week ended October 2, driven by negative global and regional cues. Nikkei 225, Japan’s benchmark index (down 5.2 percent), was the worst performer due to concerns over a cut in spending by major companies and a rising Yen. India’s benchmark BSE Sensex was the best performer, rising 2.65 percent during the week backed by positive economic indicators and strong liquidity inflows.
The Rupee appreciated 0.48 percent during the week as foreign institutional investors (FII) remained net buyers. Crude oil prices rose 6.0 percent to US$69.95 per barrel from US$66.02 last week. Crude Oil gave up some of its gains during the latter part of the week due to adverse macroeconomic indicators from the US signifying that the economy was still in the midst of a recession.
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