Mar 17, 2001|
Been a swinging week…
There has been little respite for the markets in the current week with each round of bad news pounding the indices further. As the bulls and bears fight it out in the jungle (exchange) the benchmark indices are swinging wildly putting even the king of the jungle, Tarzan, to shame.
The constant flow of bad news commenced with the budget week. The Reserve Bank of India had been pulling up Global Trust Bank (GTB) for violating prudential lending guidelines. To fulfill the lending norms the Bank had to cut back on its exposure to the capital markets. This could have triggered off the current payment crisis with few key bull operators not being able to meet their commitments to the exchange. As the slide engulfed other regional bourses the parties with long positions faced greater problems. However, the reason for the slide hit the stand that few key brokers had been furnished with privileged information, which enabled them to choke the markets. The story was spicy as it involved individuals from the top echelons of the bourses and the regulatory authority. But as if this was not enough, an expose on the defence deals rocked both the ministry and the Indian Government. Consequently, markets have ever since been gyrating, frightening away the retail investor, as the actors (also the script writer) work out a happy ending for themselves.
Adding to the political turmoil is Ms. Mamta Banerjee who has pulled out of the coalition government. This has increased nervousness in the markets, as instability at the centre would bring with it a host of other problems (delayed reforms and another election).
The NASDAQ continues to remain weak. However, as corporate America gears up for a slow down and a possible recession, top blue chips on the Dow are now facing the music. Consequently, the Dow has closed below 10,000. This may not augur well for the old economy counters. The technology-laden index, NASDAQ, meanwhile has fallen below 1,900 and tech stocks could see a fresh round of pounding on the domestic bourses.
The quantum of bad news entering the markets makes one wonder that the position of the stars may not be favourable for the capital markets. And Mr. Sinha must surely be cursing his luck. Besides, an understanding of the field of finance, analysts may now have to start tracking the stars.
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 19, 2017
Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407