It was day of debacle for domestic markets, wherein all indices were badly battered in the midst of fanatical selling by investors. Local equities, which stepped into the trading ring with a wound of having witnessed 5% plus losses in the previous week, found itself vulnerable ever since the beginning as worries over pricey valuations and uncertainty across world-wide equities forced buyers to remain mere spectators. Around noon, bargain hunting did help markets recover, but the joys were short-lived and red marks once again came into sight on the benchmark indices. Realty counter witnessed one of the most awful days on reports that banks are planning to withdraw special schemes that carry interest rates as low as 8%. Metal, oil & gas and power shares were the other wrongdoers for this surprising late mishap on the bourses. Healthcare and auto sectors, which looked promising early in the day, witnessed attrition of buyers towards the end. Finally, the 30-share BSE Sensex dropped 491.34 points or 3.09% to end at 15,404.94, while the S&P CNX Nifty plunged 147.8 points or 3.14% to settle at 4563.90.

The US markets closed mixed on Tuesday, the Dow closed lower while S&P and Nasdaq closed marginally higher, the indices made a good start on news of spike in the price of gold and corporate dealmaking, but were caught in choppy weather with analyst downgrade of some companies. Famous investor, Warren Buffett decided to pay $34 billion for the railroad Burlington Northern Santa Fe. The Dow Jones Industrial Average lost 17.53 points, or 0.18%, to 9,771.91.The broader Standard & Poor's 500 index was up by 2.53 points, or 0.24%, to 1,045.41 while the Nasdaq composite index rose by 8.12 points, or 0.40%, to 2,057.32.

The crude prices surged once again as the dollar weakened a bit and industry data showed a surprise drawdown in domestic crude stocks last week. The American Petroleum Institute (API) reported that for the week ending October 30, crude stockpiles fell by 3.3 million barrels while gasoline stocks rose by 501,000 barrels and distillate supplies increased by 1.8 million barrels. Benchmark crude for December delivery gained $1.47 to settle at $79.60 a barrel Tuesday on the New York Mercantile Exchange. In London, Brent crude for December delivery added $1.56 to settle at $78.11 on the ICE Futures exchange.

The Indian rupee declined on Tuesday as the local stock markets plunged in the last hour of trade. The rupee closed at 47.43, 47 paise lower compared to its Friday's close of 46.96/97. The rupee was under pressure since beginning as the dollar got a halt in its slide against other major currencies and the global equity markets were under pressure and have witnessed large sell-off. The domestic share markets lost more than 3% during the day.

The FII on Tuesday were the net buyers in both equity as well as debt segments. In equity segment the gross buying was of Rs 4072.50 crore against gross sell of Rs 3336.80 crore, while in the debt segment the gross purchase was of Rs 945.60 crore with gross sales of Rs 474.70 crore.

The US markets made a mixed close on Tuesday after a choppy session, on the one hand corporate dealmaking encouraged the investors about the regaining strength in the market while on the other the concerns about the financial institutions was clearly visible. The Asian markets have made a mixed start with some indices trading marginally in red. The local stock markets after a blood bath in previous session is likely to make some recovery as there is no bad news to further pull the markets, instead the statement of finance minister that India has to continue with its fiscal stimulus, is likely to encourage the markets.

Support and Resistance: S&P CNX Nifty and BSE Sensex

                                                           Nifty Top volumes

• Suzlon Energy, has posted a net loss of Rs 356 crore for the quarter ended September 30, 2009 against a net loss of Rs 23 crore for the corresponding previous quarter.
• Unitech has dragged Independent Mobile Infrastructure, a telecom tower firm to court for non-payment of dues totalling over Rs 7 crore.
• Reliance Communications is evaluating the option to join rivals Bharti Airtel and Vodafone Essar in offering a 'per-second billing' tariff option to its customers.
• Tata Motors has reported a sales growth 34% to 53,404 units in the month of October 2009 as compared to sales of 39,729 units in October 2008.
• Jaiprakash Associates' subsidiary Jaypee Infratech is likely to come up with a public issue.