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Markets to be shut on Thursday for Christmas

This article was posted on Dec 24, 2008 and is filed under Market News

Today, Indian shares end lower for a third straight day, in line with weak global markets. The BSE Sensex loses 118 points or 1.2% to close at 9,568.72

Indian financial markets will remain shut on Thursday on account of Christmas, even as the Government prepares to unveil another round of fiscal stimulus to perk up the economy amid growing worries over the worsening global situation.

Markets across the world will be closed tomorrow due to Christmas. Trading in Indian markets shall resume on Friday, while some world markets may remain shut till Monday. Today, Indian shares ended lower for a third consecutive day, in line with the weakness in global markets. The BSE Sensex lost 118 points or 1.2% to close at 9,568.72 after being as low as 9,502 while the NSE Nifty was down 1.74% to 2916. In currency markets, the rupee fell to a two-week low but rebounded to end 1.5% higher. The rupee is still down about 4-5% from a two-and-a-half-month high touched on Dec. 19.

The rupee declined as much as 0.9% to 49.19 per dollar before bouncing back to close the day at 48.0650. It had ended at 48.78 yesterday. This was the first gain for the rupee in four days, as some exporters sold dollars. The benchmark bonds advanced, ending three days of losses, on speculation that the Government will say this week inflation fell to the lowest since March. Inflation is expected to have fallen to a fresh 9-month low in the second week of December due to a tax cut on manufactured products and cheaper fuels. Economists expect inflation to fall to 6.57% in the week ended Dec. 13 compared with 6.84% in the previous week. Yields on 10-year notes declined on speculation that falling inflation will allow the RBI to cut its key interest rates further in order to boost economic growth.

The Government sees scope for further easing of monetary policy over the next six to 12 months as the economic growth slows, the Finance Ministry said in its mid-year review of the economy yesterday.

The Government is considering another stimulus package to boost a slowing economy, which may include steps to ease liquidity and relief measures for export and housing sectors, Commerce Minister Kamal Nath said on Wednesday. He also said that the Government was looking at possible duty cuts for more goods to stimulate demand in the economy. “We are looking at financial, some liquidity issues, export, and something to stimulate demand. Realty also,” Nath said.

source: Indiainfoline

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