North Korea and South Korea today exchanged artillery shell firing which had created tremors in the Indian stock markets, which was weak otherwise. Markets opened in red in the morning, due to weak global cues like
>>concerns of spillover of Ireland’s debt crisis to other European nations like Portugal and Greece
>> Raids by US Government Agencies in the hedge fund offices
>> China’s high inflation and their desperate moves to curb the same
>>Domestic 2G spectrum allocation issues that rattle day to day activities of the Indian Parliament
Panic selling intensified by 1 o’clock, and Nifty touched its lowest level for the day at 5824.95 and was down by around 146 points at mid-day but recovered in the late afternoon trade and closed at 5934.75, down 1.25%. The institutional activities are low in recent days; FII became selective because of the uncertain macroeconomic fundamentals of the world economies.
