The Indian market that was

The main factors that affected the Indian market this week:

  • In India ECB (External Commercial Borrowings) are capped by the RBI. Any ECB of more than $20 million cannot be remitted to India and has to be kept in foreign currency abroad. This has mainly been done to control the appreciation in the rupee. Ideally the $20 Million is not a very big amount to control the rising rupee but yes it might be a factor for it to slow down a bit. Thats the reason why we had a spike in IT stock prises as they will get the benefit of less appreciation in rupee.
  • Three of the funds of BNP Pariba is being suspended from operations due to a potential crisis in the sub prime lending in the US. Read Article http://kaimalsway.blogspot.com/2007/08/i-guess-its-just-begining-for-subprime.html for more details.
  • Central banks in Europe, Asia and North America have pumped in money to control the situation in the financial markets. The total money pumped in is estimated to be around $300 billion. This is mainly done to avoid any credit market crisis as credit is getting tighter in
Next week should be the most volatile as nobody knows the depth of the sub prime problem If more funds close down then we might have to face the panic situation. But as I said earlier it might also depend on the liquidity injected by the central banks or the selling of the market stabilization bonds by RBI.

I still feel each dip in the market should be taken as an opportunity to buy as the long term story is still intact.

So lets Invest & keep reading..

Comments

  1. Realty RiderJune 25, 2008

    India is beginning to make news worldwide. It’s just the right time to think India. There's a new sense of confidence in Indian business. This confidence arises from the growing success of Indian enterprise in the face of competition in an increasing number of sectors. The India growth story is going stronger than ever. Favourable demographic and psychographic changes relating to India’s consumer class, international exposure, availability of quality retail space, wider availability of products and brand communication are some of the factors that are driving the retail in India. Real estate consultancy Jones Lang Lasalle Meghraj has identified 50 Indian cities that are likely to witness most of the retail action over the next couple of years — both in terms of development of malls and advent of organised retailers. And Jaipur, Lucknow and Kochi find mention among cities poised for “high growth.For more view- http://realtydigest.blogspot.com/

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