Our Markets were down by 5% in the past week and we are seeing red for the 7th day in a row.And all indicators are pointing towards a 8th day fall too.Rupee is weak against the dollar for the last few weeks and the weakness continues to give nightmares to our economy and policy makers.We are one of the worst performing markets in the world.Rising rupee means rising interest rates on foreign loans and more pressure for the promoters who have pledged their shares.More than 165000 Crores worth of shares are pledged by the promoters.Rising inflation means rising input costs for the companies and markets are desperately looking out for fresh boost in terms of policy measures in the Winter session of the parliament.
Nikkei opened negative as Japan's exports fell in the month of October.The super committee in US is set announce that they have failed to reach an agreement to reduce the deficit by 1.2 Trillion Dollars.No wonder the US futures and European futures are trading down by almost a percentage.In Spain, the opposition wins the election.
Remember in my last week's article, I wrote that the EFSF was forced to buy its own Bonds from the auction for a 3 Billion Euro Bond issue.And none of the G20 nation is a fan of funding EFSF.So the only way is to print Euros by the ECB and if that happens,Germany would walk out of the EU.That would signal a disaster.The situation is grim and I would advise you to stay cautious with your highly leveraged trades and in my humble opinion this is not the right time to accumulate or bottom fishing.Though my friends who are into technical analysis are of the view that we can expect a bounce back before expiry, I feel that, today is not the day.
Sources suggest that there are more than hundreds of North Korean Nuclear and Missile experts seen meeting with their counterparts in Iran.This endorses the long time suspicion that North Korea was helping Iran with its Nuclear and Missile programs.
Let me finish this article with a good news.There is a news that Government has asked LIC to consider buying 10% stake in the troubled KingFisher Airlines.The final decision would be taken by LIC.
Have a nice, profitable week ahead!!!!
