Nifty

As the body count from within the Taj Mahal and Oberoi Hotels begin, Mumbai and all of India is just beginning to understand what has happened because for the past sixty or so hours everyone has just been waiting for the terrorist situation to end. It is only now that the fallout and the blame game will begin. From a business point of view Mumbai has suffered as said earlier .A number of people have died in this tragedy including businessmen like Ashok Kapur, the Non-Executive Chairman of Yes Bank.

The ‘BOTTOM’ is an important landmark in a downward stock market. In the current period it is a commodity as sought after as hope or confidence. It is important because it indicates the lowest point that a stock market‘s index will hit. Once a bottom is reached there is no way but up for the index which also means that if you invest at the bottom, your money will have no way to go but up. The benchmark Sensex of the Indian stock market breached the 10,000 level and closed at the 9000 level for the first time in two years today. While it is still difficult to say if we’ve hit the bottom, we can surely say we’re somewhere close to it.

The ambitious 700 Billion Dollar Bailout package was supposed to be the answer. American Politicians sat through the night and went through every single line of this proposed plan in an effort to save the lending arm of our financial system: The Banks. They went ahead and announced that they had reached a plan that would allow the money to flow into the US Markets and trickle on to the rest of the world. Strategically announced before the Australian markets opened, it was supposed to bring back a certain amount of confidence. This certainly didn’t happen because markets across the board were hammered today leaving many scratching their heads. Our Sensex was one of the biggest losers.

We did mention earlier that the entire structure of the World Economy is changing and this change has brought about a high impact casualty. The US investment bank Lehman Brothers which survived many a downturn including the Great Depression Of 1929 has announced today that it had filed for bankruptcy. The going bust of Lehman is an indication of the US Sub Prime Crisis and the effect it has on the rest of the world including India. Our Sensex was hammered even before Lehman formally declared bankruptcy, simply anticipating the news of their bankruptcy.

The India Street Analysis

By Sundaramurthy Vadivelu

P-Notes are financial instruments or contracts that are issued by FII’s to investors and hedge funds who wish to invest in India stock markets, but who are not registered with SEBI (Securities and Exchange Board of India).

By Sundaramurthy Vadivelu

Note: This article highlights the past events in Indian political scenario and stock markets. It has to be viewed from a statistical and technical perspective and not from a political angle. The author has no association, membership or connection with any political party.

The India Street Analyzes the Analyst

By Sundaramurthy Vadivelu

Rakesh Jhunjhunwala is undoubtedly the greatest Indian investor. He has been active in Indian stock markets for nearly 22 years now. He has seen the ups and downs at Dalal Street. His opinions have been vivid and most of the times he gets those right. The India Street attempts to analyze his opinions on US and Indian stock markets.

Indices break records; no respite yet for the bulls

Sundaramurthy Vadivelu

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The Nifty closed at 4464 on August 31, losing 64.85 points or 1.43% last month. The long lower shadow indicates that the lower side volatility was high i.e. attempt was made to push the index down but the bulls managed to close it near the open.

Sundaramurthy Vadivelu

Disclosure

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