The past week saw a bloodbath in global markets....Dow had its worst weekly closing since its inception.....Powerful indices like FTSE, CAC, DAX, Nasdaq, S&P 500 all closed 15-20% down in a week.......Japan was devasted...so were Hangseng and our own BSE,NSE.....No one got spared......Few posts back, I wrote about my fear whether the bailout will improve sentiments or not.....As feared, the sentiments got worsened and all rushed in to get liquidate their losing positions....Fear was compounded by poor growth statistics in US, Europe......Central Banks across the world cut interest rates, but still nothing improved.....Fridays session saw an initial fall to 7700 levels in Dow before a massive pullback rally in last 1 hour to close only 100 points down......
In India, we didnot show any positive surprises.....One after another bad news started pouring in......First, IT major Infosys cuts down its yearly guidance, and then comes the shocker.....IIP nos come in at 1.3%......down by almost 10% YoY......This was a real shocker....It means we are heading towards an industrial degrowth if not recession......Liquidity crisis is clearly visible.....Inter Bank lending rates were at 24% as compared to a normal 8%.....RBI tried to infuse liquidity by reducing CRR by 200 bps and Sebi lifted restrictions on P-Notes......All stocks were tumbling.....ICICI, RCom, RelInfra were down by 20% in a day......This is real crisis.....Most were not prepared for it.....Hundreds of hedge funds just vanished in the air and the their redemption pressures were visible......This is probably the beginning of economic pains....We might see job cuts across all sectors in the coming years......Nobody knows how long it will last.....Remember, this is not a burst of IT bubble.....This is an hit in the world economy......(Check the photos to remember these days).....
In India, we didnot show any positive surprises.....One after another bad news started pouring in......First, IT major Infosys cuts down its yearly guidance, and then comes the shocker.....IIP nos come in at 1.3%......down by almost 10% YoY......This was a real shocker....It means we are heading towards an industrial degrowth if not recession......Liquidity crisis is clearly visible.....Inter Bank lending rates were at 24% as compared to a normal 8%.....RBI tried to infuse liquidity by reducing CRR by 200 bps and Sebi lifted restrictions on P-Notes......All stocks were tumbling.....ICICI, RCom, RelInfra were down by 20% in a day......This is real crisis.....Most were not prepared for it.....Hundreds of hedge funds just vanished in the air and the their redemption pressures were visible......This is probably the beginning of economic pains....We might see job cuts across all sectors in the coming years......Nobody knows how long it will last.....Remember, this is not a burst of IT bubble.....This is an hit in the world economy......(Check the photos to remember these days).....
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