Market worries, business hopes & more - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Market worries, business hopes & more

May 12, 2008

What's worrying the markets?
There's no stopping the spectre of rising inflation as it continues to cast its spell on Indian stock market. Rising prices of fuel and food and now a sharp depreciation in the currency has led to enhanced fears regarding inflation touching even higher levels. And even then, it is important to note, the inflation figures (measured by wholesale and consumer price indices) outlined by the RBI (Reserve Bank of India) and other statistical organisations remain understated, for facts like the rising crude prices that have not been passed on to the consumers by way of higher prices for petrol, diesel and kerosene.

  • What's keeping policymakers worried? In this scenario, stocks from the oil and gas and rate sensitive sectors have been particularly hit. Pressure on stocks of companies that require high levels of capital investment is also showing no signs of abating. And then there is the fear of the economy slowing down on the back of high interest rates that have curbed money demand, both for consumption and investment. Without trying to sound overtly unnerved about these issues that dog sentiments, we believe that the pain is here to stay for the short to medium term.

    Oil's boiling over
    As experts at Goldman Sachs, the US investment banker, discuss the 'super spike' that crude prices can take en route to the US$ 200 per barrel mark over the next 6 to 24 months, the commodity is showing no signs of costing any lesser than its current highs. Factors that have kept oil at the current high levels (of nearly US$ 120 per barrel) include continued strong demand from guzzlers like India and China, supply side issues from oil's largest producers, and of course, the US Federal Reserve induced dollar hammering that has led to speculative buying in crude and other commodities.

  • Will the boiling oil spill over?

    To make things simpler, since most of the world commodities are traded in US dollar terms, depreciation of the greenback makes its cheaper to buy these commodities, even when the users are finding it difficult to bear the 'rising' prices. Not only crude, you name a key commodity and it has witnessed a sharp spike in prices over the past few months steel, copper and aluminium to name a few.

    Taking the India model abroad
    The news concerning Indian telecom major, Bharti acquiring a major stake in its South African counterpart, MTN, is heating up. The fact that the Indian company is aiming to replicate its low cost model across other geographies with similar income levels as India, is a rationale that carries much weight. As a matter of fact, India is adding 3 mobile subscribers every second. This is up from 1.5 four years back.

  • Understand fundamentals of identifying a telecom stock

    Unlike most of the consumption stories doing rounds in India and which show huge potential in the untapped rural markets, home to two-thirds of the country's one billion-plus population, the increasing penetration of mobile telecom services is being acted out in reality. In rural India, carrying a US$ 20 mobile phone can be something of a status symbol. This is clearly indicative of the much-larger drama unfolding in the Indian telecom market, once considered a backwater and now the fastest growing in the world.

  • Equitymaster requests your view! Post a comment on "Market worries, business hopes & more". Click here!


    More Views on News

    BSE Sensex Surges 510 Points; ONGC Among Top Gainers (Market Updates)

    Sep 28, 2020 | Updated on Sep 28, 2020

    The BSE Sensex Surged 510 Points; ONGC Among Top Gainers. Find the latest update, special reports and news on all time high gainers of BSE Sensex at

    Why the Market May Rally for a Few Days (Fast Profits Daily)

    Sep 28, 2020

    Why I think the market can rise for the next few days.

    My Top Pick for 2021 is Not a Stock. It is Something Much More Powerful (Profit Hunter)

    Sep 28, 2020

    My top pick for 2021 is something that has helped me and my subscribers beat the stock market by a factor of 2:1.

    Your Queries on the 8-Year Cycle Answered (Fast Profits Daily)

    Sep 25, 2020

    You've sent in your queries on my videos on the 8-year greed and fear cycle in the market. I'll answer them in this video.

    It's When You Sell that Counts (Profit Hunter)

    Sep 25, 2020

    How I alerted readers to the impending crash last week.

    More Views on News

    Most Popular

    Will the IPOs in 2020 Be as Rewarding as the Ones in 2019

    In 2017 funds raised through IPOs is highest over a decade. And the stock market still flying high, some observers are predic...

    Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

    Sep 17, 2020

    This leading household brand will profit big time in a post covid world.

    My Top Stock to Buy in this Market Selloff (Profit Hunter)

    Sep 22, 2020

    The recent correction offers a great opportunity to buy this high conviction smallcap stock.

    Can the Nifty Fall to 10,200? (Fast Profits Daily)

    Sep 24, 2020

    The Nifty has reached an important support level today. If it breaks then we could see further downside.

    What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

    Sep 18, 2020

    Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


    Covid-19 Proof
    Multibagger Stocks

    Covid19 Proof Multibaggers
    Get this special report, authored by Equitymaster's top analysts now!
    We will never sell or rent your email id.
    Please read our Terms


    Sep 28, 2020 (Close)