I guess its just the begining for the Subprime crash

Sub prime lending i.e. lending to not so credit worthy clients at a premium has again taken a toll on the world markets with European markets going down followed by our own SENSEX as three of the hedge funds of BNP Pariba has been suspended from redemptions.

In my last post I was contemplating that more of the hedge funds might collapse which might take a toll on international as well as our market. Indian markets are a part of the emerging markets, which in the total international asset allocation sense are considered risky. Due to this any problem in the international market will attract a sell off here.

Fed, which had come up with its policy review on Tuesday, where it has kept all the key rates unchanged, should ideally have understood the graveness of the subprime and had acted upon it.

Most of the US markets which opened in the evening our time today is down. Tomorrow it’s a Friday and with all the credit concerns and the subprime our markets might be a bit extra volatile.

All said India’s growth story is still intact with inflation below 5% and Interest rate, which seems to be peaked with a GDP forecast of 8.5-9%, I think each fall in our market is an opportunity to buy.

So Keep reading and lets invest

Comments

  1. Realty RiderJune 25, 2008

    The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???For more view- realtydigest.blogspot.com

    ReplyDelete

Post a Comment

Popular posts from this blog

Real estate prices in India face slowdown

Real estate price in India is stabilizing and is facing steady slowdown especially in the metros. I have taken Bangalore as an example in this blog but other places too are affected by similar concerns. In Bangalore the real estate price is going crazy, though none of the real estate agencies would like to agree to this fact. Property prices moves due to the basic principle of Demand & Supply When demand is high & supply low prices will go up When demand is low & supply is high prices will come down For example let’s assume that somebody has bought a property for Rs X and he is trying to sell the property (say after a year), there can be three options, assumption being that the owner is in need of money and cannot wait for more than 3 months to sell the property. When the property prices are zooming everywhere> Here the owner will try to add as much premium to the property as possible, wait for three months and sell off in the last month at the highest bid ( RsX + RsY) W
Read more

Details of New Pension Plan 2009 (NPS) of Govt of India, PFRDA

Image
T he New Pension Scheme (NPS) has been launched on ‘Labour Day’ on Friday for all the citizens. This followed the confirmation by the National Interim Pension R egulator of the scheduled launch of the Mega Pension Plan from Friday. This scheme will be for for employees of private sector, self employed and extended it to everyone in the country. The Pension Fund Regulatory Development Authority ( PFRDA ) has decided to bring in some changes in the new pension scheme with effect from May 1, 2009.   The   new pension scheme(NPS)   will allow the fund investment of nearly 50% in the high risk stock markets. Six major fund managers were shortlisted for the   new pension scheme   in the month of February. They include Reliance Capital,ICICI Prudential Life Insurance,State Bank of India,Kotak Mahindra Bank,UTI,IDFC. An expert panel was formed under the guidance of HDFC chairman Deepak Parekh to look into the matters of   new pension scheme . The   PFRDA   has made a strict limit of inve
Read more

The World of Portfolio Management Service (PMS)

During the last market correction one of my client came to me and said why don’t you give me a mutual fund, which tries to beat the market by buying when markets go down and selling when its up. Why is it that MFs are not so aggressive?That’s a genuine concern which lot of investors have and to do so one has to actively manage the portfolio of stock, which happens in a portfolio management service. What is a Portfolio Management Service? PMS is a service designed for those customers who due to lack of time or knowledge cannot actively manage their portfolio. The service includes making a portfolio based on the risk appetite, needs, goal, time frame etc and actively managing the portfolio on behalf of the client to reach the specified objective. The investor is constantly informed about the happenings in the portfolio by way of personal interaction and reports. The PMS team will study the economic data, fund/scrip wise performance and research on various data relevant for the performanc
Read more