The four long years of bull run some how looks to have come to an end with markets hitting a new low figure almost everyday.Indian share markets gained a handsome 45% roughly in 2006 and 2007. Then came the US recession story and from there onwards it has started bleeding along with the neighboring Asian and US markets.

Till date the Indian markets have lost about 21% in the year 2008 itself,the biggest fall among its peers in Asia.Its current P/E is hovering around 21.58 after Chinas 36.Analyst are of all different views at this stage with some saying that its a attractive time to get in as the valuations look good while others are saying that the markets have fallen below the 200 day moving average which is a sign of  a bearish trend.

The budget 2008-09 presented by FM also did not support the markets.The waiver of Rs 60,000 crores is being debated hotly.It has led to a steep fall in the Banking stocks especially ICICI and SBI. There are  news that the banks will be compensated and FM saying that this is actually a good prospectus for the banks as the farmers will be able to take more loans after the clearance.Whatsoever is the outcome of all this,a major sector of the market i.e. banking is severely hit.

This was the worst week in the markets in the last 20 months or so with markets witnessing a loss of over 9.5% and nifty losing around 9% over its previous week closings.The realty sector seems to be badly hit with loss of 19% followed by banking which lost 17% and BSE power index losing 14%. 4800 levels for nifty is very crucial as if it goes below that we can expect  a fall of still around 200 points in Nifty.

With dollar gaining ground some of the IT counters are being traded very much.It is suggested to look into some of the Indian specific IT companies as they dont depend upon dollars very much and are expected to fare better than the markets.

News from US is also a bit dampening.Reports shows that US employers slashed 63,000 jobs in Feb 2008 which is a record in the last 5 years.FIIs have already sold stocks worth $ 3.14 billion in the year 2008 itself.The next big trigger is going to come on Mar 18 which is the scheduled  date for FED meeting. Most likely we are going to see a further rate cut this time around to prevent the US markets from the grips of a severe recession.

Meanwhile the inflation has hit the 5% mark which is highest in the last 9 months.In the week ending Feb 23rd the inflation figures stood at 5.02% due to rising prices in food items,oil etc.But still the Indian story as always is very much intact but the Indian markets are not decoupled from the world markets.So the temporary jitters may still be there for some more time.Its better to look into the markets from a long term view perspective.

Popularity: 7% [?]

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Powered by MightyAdsense

• Inflation Soars To 12.44% For The Week Ending Aug 2, 2008
• When Will The Indian Markets Over Take Its Peers?
• Inflation For The Week Ending June 21 At 11.63%.Intra Day Calls For July 7
• Inflation Marches Ahead To 7.61%:Markets Lose 344 Points.
• A Research Report On The Falling Markets