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Market opens lower

Market opens lower

Every time there has been a drop in the indices, there is a belief that the market has bottomed out. But on Friday, the message was clear – no one knows what the bottom is and the market could fall even further.

Today looks like another bleak day.

U.S. stocks fell on Friday (as expected). They tumbled in early trading but recovered some ground. Yet, the Dow Jones Industrial Average was down by 3.6%. This morning, there has been weakness across Asia. Volatility will be high as the F&O October 2008 series expire on Wednesday. FIIs may continue on their selling spree.

This week, the market will be keenly awaiting the earnings results of SBI and ICICI Bank (to be declared today). Everyone’s attention is also on the U.S. Federal Reserve’s meet, where they are expected to cut rates. The 3rd quarter GDP figures for the U.S. economy will also be revealed later in the week.

Oil prices continued to slide, with crude plunging to a 17-month low below $65 a barrel despite news that oil cartel OPEC is cutting production by 1.5 million barrels a day, starting November. COMEX gold for December delivery rallied $15.60 to settle at $730.30 an ounce.

Looks like the bulls are not too interested in Diwali celebrations this year.