As I wrote here yesterday about a big gap down opening for the Indian markets,  the same thing had happened due to bad global cues and the sensex slipped almost  700 points from its previous close. In realty the Indian markets had discounted  the global financial turmoil more than it was expected. But the markets made a  smart recovery yesterday and finally snapped the 7 day losing streak too by  gaining 53 points. All these development was mainly due to finance minister  coming out and giving the assurance that Indian economy will be affected only to  a very very limited position.

As most of the Indian banks are local in nature and they dont have huge exposure  to these foreign banks like Lehman Brothers and Merrill Lynch. At one point of  time the markets touched lows of 12,558 levels coming closer to the lows of 2008  made in July this year. In net value this turmoil had an impact of about 1682  points in sensex or 11.26% from its previous close in the last 7 trading  sessions.

Banking stocks were the worst hit especially ICICI bank and then realty sector,  IT counters were also bleeding. FIIs were selling in frenzy. Even the banks  like Lehman brother and Merrill Lynch were selling assets in the market in the  companies where they had position earlier. For the investors its a best time to  re-enter the markets and start investing as the valuations of most of the  companies look very attractive.

Meanwhile there is a news that the US and European govt are pumping in billions  of dollars to boost liquidity in the financial market and prevent any more  financial turmoil in their countries. Fed has invested $85 billion to rescue AIG  the American International Group which is the biggest insurer in the world. Due  to this the US markets had made a smart upward move and finally closed above the  psychological mark of 11,000 points in Dow. So we can see a good opening in the  Indian markets too. The inflation for the week has also come at 12.14% which is  more than last time figures.

Some intraday calls would be : infosys, Punj Lloyd, RIL,ICICI, JP Associate, BHEL, L&T, DLF, Akruti City. You can enter into these stocks for medium term  prespective also as they look very good at these levels.

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