I wonder who will win the world cup... Indian team has a dream combination and are most likely to lift the cup...but that's on paper. what really matters is how they are performing on the field. Likewise where Nifty heading depends on the liquidity scenario. The sudden 1000 point fall was not because there was a mad rush to get out. It was because no one wanted to buy. The fii net sell figure rarely touched 1000 cr in the last 2 months. What we saw in the last crash of 2008 was the sell-at-any-price panic. This time we are seeing a different kind of market. Lack of buying interest.
A total of 29 billion dollars was needed to lift nifty from 5300 to 6300. 1.5 billion dollar outflow has undone all the good work, leaving the other 27.5 billion stuck at very high levels. Most of the money spread across midcaps and small caps are at nifty 4500 levels already and the loss is too huge for any foreign portfolio manager to bear. No matter how good the growth story is, if your investment goes down by 50% then they are not going to average their losses by buying more. They dont want a reason to remain invested any more. They just want to take their money out, since no one is buying so they are stuck.
Another bubble is the fed interest rate that is waiting to burst. Borrow money at 1% and make investment in EM for a return of 12-18% was a dream that got shattered in this fall. Now imagine if the cost of the fund goes up. That is a disaster scenario waiting to happen.
My opinion is there is a lot more pain left in the system. Trapped people want a way out not a way in. Nifty rallied from 2200 to 6350 in 2 years Its time to give some points back... India growth story hasnt really changed that much from 2006 to 2011. It was the market participants sentiments that has been damaged this time again...
A total of 29 billion dollars was needed to lift nifty from 5300 to 6300. 1.5 billion dollar outflow has undone all the good work, leaving the other 27.5 billion stuck at very high levels. Most of the money spread across midcaps and small caps are at nifty 4500 levels already and the loss is too huge for any foreign portfolio manager to bear. No matter how good the growth story is, if your investment goes down by 50% then they are not going to average their losses by buying more. They dont want a reason to remain invested any more. They just want to take their money out, since no one is buying so they are stuck.
Another bubble is the fed interest rate that is waiting to burst. Borrow money at 1% and make investment in EM for a return of 12-18% was a dream that got shattered in this fall. Now imagine if the cost of the fund goes up. That is a disaster scenario waiting to happen.
My opinion is there is a lot more pain left in the system. Trapped people want a way out not a way in. Nifty rallied from 2200 to 6350 in 2 years Its time to give some points back... India growth story hasnt really changed that much from 2006 to 2011. It was the market participants sentiments that has been damaged this time again...
even in this fall in which most people saying so and so happen do u think FII and other DII are invested in dump ????
NPS insuance and MF sector getting 7000 crore + per month so far without DTC when it come into force everything would start looking better
Fed chief last week warned US banks of get ready for another recession BUT is that mean they would just start crying and make arrangement for recession like getting lots of loan to settle when Govt announce pay half and settle like most of people in India DO????
No Bro my little knowldge suggest that they would now start reviving EM mkts so that they can pull slowly there money out so nothing goes wrong and stop falling in recession
Obama Debt plan is proof of that Fed is not going to hurt that plan
As I have alredy written You have Vast knowledge and I live in dreams of my own so my chance of going wrong are more Kyonki body to nahin DIL to Batcha Hai