Epaper
Dow Jones did it again. The Indices pulled back nearly 181 points to finally close down 45.1 points at 12,213.80, above the support levels of 12,140-12,170 band. Citigroup bore the brunt of investors today after Merrill Lynch revised the growth forecast and might declare additional write downs. Tomorrow is another key day with ADP Employment and Factory orders data coming up. Any surprises will be met with huge gains in the Indices.
Asian markets started on a mixed note with Nikkei trading marginally down 49 points at 12,942.85. Strong yen is weighing on the stocks. Bank of Japan will be meeting today and most likely to keep the rate unchanged.
Indian Markets yet again proved to be the weakest among the Emerging markets and most importantly the Asian pack. Sensex tumbled to a 5 month low yesterday after a private TV channel tried to expose the sub prime link of ICICI Bank, which the bank later denied. However ICICI Bank and its overseas banking subsidiaries have an aggregate exposure of USD 2.2 billion in credit derivatives.As of January 31, 2008, the mark-to-market negative on this portfolio due to movement of credit spreads was about US$ 155 million. The current declines should be used by long term investors to buy the stock. With ICICI Securities IPO coming up and demerger of many of the subsidiaries will unlock the value in the stock.
Tata Motors is setting ambitious targets for Nano. The company is looking aggressively to export Nano to US and European markets. The stock is likely to outperform the market in the coming years on exports.
SEBI will meet today under the chairmanship of Mr.CB Bhave. SEBI is likely to slash all regulatory charges and approve realty Mutual Funds. FM remarked on Tuesday that FII’s are not behind the recent market crash and there was no proposal to ban them.
It is high time for a bounce in the Indian Markets but technically we have no supports in place till 15,880 levels. Stay away from the markets till normalcy returns. There will not be any run away rallies this time.
