Epaper
Indian Markets open to another nightmare session globally after US stocks were hit hard on Friday. From the last few weeks the DOW Jones is getting used to the habit of wiping of few days gains in a single day’s fall.
Japanese markets followed suit with a huge fall of nearly 4 percent (540 points) early Monday morning signalling another Black Monday across the globe. Yen continued to get stronger against the US Dollar. All other Asian markets are down in the range of 3 to 4 percent Monday morning.
Chidambaram, Indian Finance Minister as expected announced more reforms, wasting a golden opportunity to boost the reeling Dalal Street. Though there were not much of expectations from the budget this year negative global cues might have a say on the street today. Trading volumes reduced by as much as 30 percent in the last two months. Brokerage stocks are likely to be impacted negatively on the news of increase of STT.
Few midcaps are likely to continue the run on positive implications from the budget. Indian markets are going through a bad patch, in line with their global peers. We are still positive on the economy and favour the Bulls. We expect a worst case scenario of BSE Sensex slipping to 14,000 levels in case of a recession. But value investors should not be concerned about the same.
Watch for VSNL (Tata Communications) Tata Teleservices and GTC Industries in today’s trade.
— Review written by Research Team @ www.indiabears.com
