Extraneous International and Local factors

sh50 · #1 21st October 2004, 08:43 PM

Time and again CNBC shows indices of European Markets, American Markets, Asian Markets followed by some remarks about dow jones. Without specifying, there is talk on oil, inflation and interest rates. One really wonders how much, how often and to what extent all these affect the Indian markets.

Can somebody please specify their effect or are they like the plethora of indicators in metastock- they conceal more than they reveal or rather they confuse more than they enthuse since they don't seem to be of much use.

dilip2k · #2 21st October 2004, 10:03 PM

Right said my friend

just a bunch of irrelevent stuff a channel needs in order to appear erudite and all knowing. Stick wiht what you know and all this jargon and economic data is not going to hurt you. You will get hurt if you take it seriously

. Im sure what you know about the markets by the sweat and time you have spent here is more than what these MBA smartlooking smoot talking bunch of guys/gals know or will ever know from their ivory towers. Wish you luck with your trading

milind · #3 22nd October 2004, 06:33 AM

I am not sure the stuff reported on CNBC in India and how it relates to the Indian market. Here in US, I have found it somewhat useful. Various topics like Oil prices, commodity prices, inflation, job reports, interest rates that they report are seem relavent. Sometimes it translates to some $$, most times it doesn't - for small investors. e.g. Rising oil and gas prices prompted me to invest in related sectors. Frequent reports on outsourcing mean invest in INFY et al. Macro economic factors like mortgage rates and employment reports affect overall market mood, may be useful to large institutions - but I don't know what to do with those.

Secondly, CNBC is like any other media. They report whatever is juicy will get them good ratings. As a result they tend to exagerate the market trend - in either directions.They had their share of blame in creating the tech bubble of late 90s, and the burst later.

Thirdly, I feel Indian markets are still somewhat shielded from global markets. e.g. I don't know why $55/barrel hasn't hurt Indian market at all. Probably the subsidies.

-- Milind

sh50 · #4 22nd October 2004, 11:02 AM

I got this in my email yesterday

"Market analyst Sanjay Rawal of Open Online Securities said, "I think by and large the markets are drifting down because of various global factors rather than any local factors. The Dow itself is at a very crucial point and it needs to bounce back. If it does not, obviously there would be a drag-down effect from there. Also, the Asian markets haven't been doing too well of late."

Amajority of them are like this. I once read the difference between relevant and irrelevant info is trying to find your wife or girlfriend in a stadium if they got lost. We really need good information filters to give us a good jist. Otherwise knowledge and info are infinite.

Perhaps Traderji or somebodly knowlegeable should give a brief write up on how each of these so called factors effect the Indian stock market.

sharv · #5 22nd October 2004, 01:11 PM

finance budget2004-05 was based on crude prices ranging $30-35, now at 54 !
one may assume worse and adverse affect on every sector .

sh50 · #6 1st November 2004, 07:48 PM

CNBC keeps talking about US elections. How do they exactly affect us. Is it because Bush's connection with oil.