Another Manic Monday at the Markets

World over markets have crashed today , Dalal Street has been no different…crashing 751 points !

Todays Market map is all Red and A/D ratio is 1:5.5 .

Name Trade Change 52-wk Range
NIKKEI 225 10,473.09 465.05 4.25% 10,938.10 – 17,489.00
FTSE 100 4,749.64 120.7 2.48% 4,671.00 – 6,751.70
CAC 40 3,868.83 211.92 5.19% 3,844.63 – 5,882.07
DAX 5,516.78 280.25 4.83% 5,617.81 – 8,117.79
SSE Composite Index 2,173.74 120.05 5.23% 1,802.33 – 6,124.04
TSEC weighted index 5,505.70 236.53 4.12% 5,530.19 – 9,859.65
KOSPI Composite Index 1,358.75 60.9 4.29% 1,366.88 – 2,085.45
STRAITS TIMES INDEX 2,168.32 128.8 5.61% 2,239.75 – 3,906.16
HANG SENG INDEX 16,803.76 878.64 4.97% 16,283.70 – 31,958.40
S&P CNX NIFTY 3,602.35 215.95 5.66% 3,715.05 – 6,357.10
BSE SENSEX 11,801.70 724.62 5.78% 12,153.50 – 21,206.80

I expect more volatility ahead and things wont be rosy in the near future. The worse bit of news Rupee is also at an all time low of 47.45, its lowest since April 10, 2003, not good news when we are net oil importers and the oil we buy is being financed by oil cos and off balance sheet ‘Oil Bonds’. worse the govt has gone overboard with its borrowings

Well whoever said FII inflows aren’t hot money!

No wonder, there were no comments from the Fin min today .

pic from sify

The latest news is that the North  Block is bucking under the pressure of the continuous crash in Rupee from the recent Rs 39 to today’s Rs 47.5 a whole 20+ % within a few months.

Worse there is a huge liquidity crunch as call rates are in double digits as there are outflows on account of Global liq crunch and FII Selloff worsened by adv tax payments and govt borrowing in bonds reaching 90% of annual budgeted figures sucking out local liquidity.

SEBI has just announced that the restrictions on P notes are off and RBI is announcing a cut in the CRR by 50 basis points.

Read: Sebi revises P-note norms, scraps ODI restrictions

CRR cut by 50 bps; move to infuse Rs 20Kcr into system

But will that be enough to stem the tide ?

Mostly not thanks to the global liquidity crises and the wholesale fii pullout

Month Net Purchase
Sep-08 -7,937.00
Aug-08 -2,065.80
Jul-08 -1,012.90
Jun-08 -10,577.70
May-08 -4,917.30
Apr-08 979
03-Oct-08 -1,046.00
01-Oct-08 -284.2

And maybe well see 10400 to 10500 sooner than later because the Dow just declined 800 points to break the crucial 10000 barrier reacting to the fall in other international markets , beating the recent 777 point decline.

So Is it time to buy and attempt to hold the falling knife ?  … will u put in some moolah in the markets ?

2 thoughts on “Another Manic Monday at the Markets

  1. Ah the global meltdown. I think the market is low enough to buy some good stocks and sit over them. Moreover, I think it is an ideal time to invest in US market.

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