Since the markets are being hammered we now have analysts coming forward and talking about cyclical bear markets. Stock market analysts seem to be more like cricket commentators. All are good at making statements after the results are out! Anyways lets see what the markets have in store for us today.
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Pre-Market : Is there a hope??
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Fortunately, US Markets have closed in the positive and it is reflected in the Asian Markets. Most of them have opened in the positive. That's a good sign, at least for today.
I was hit by this most damning of statements while browsing through the various news sites
Sensex may fall another 20% by yr-end: First GlobalAnother one that caught my eye after the Reliance Power debacle is
Is it the end of the road for primary market?Some encouraging statements were also there
TCS sees no immediate impact due to US slowdownAsian markets being in the positive territory is a solace so my guess is that Indian markets will follow them but how they close will be another matter altogether.
The global equity market meltdown hit India the least compared with other emerging equity markets in January. The Indian market shed 16% as against Russia's 16.12% and China's 21.40% - Do you consider this as positive?
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Market : Did it react as expected?
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Market has opened positive in line with the other Asian markets but was hugely volatile through out the day. And it has closed in the negative but the day has to be termed very good as compared to yesterday. The volatility is still there - guess people are ready to sell off whenever the stocks make a slight recovery. It can only say that there are lot of speculators in the market than investors. People seem to be worried. India is still growing and there is no bad news on the economy front but still people don't seem to have the confidence. I am not sure what the FIIs and the MFs are doing. Are they staying put or selling off?
But one thing for sure, whatever happened in the last few weeks is good for the genuine investors who look to invest in fundamentally strong stocks. They must have felt like fools when the dubious stocks were running up crazy and the sound stocks stuck.
European markets are in positive but only marginally. If we will have a couple of days without negative news from US then the world markets will get a chance to stabilize and we can all take a breather.
RK
http://www.RentalAndRealEstate.com
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