Saturday, July 28, 2007

Why Friday’s 540-pt fall won’t hurt much

It’s getting increasingly difficult to write definitive stories on markets in a flat world of 24x7 trading activity. Amid fears of a collapse in its housing market — an important, market moving financial indicator — the US market fell yesterday, leading to a contagion fall across the world. India followed too, with the Sensex falling 542 points or 3.4 per cent to close at 15,235.
But even as analysts were rolling their sleeves to buy some bargain basement stocks --- Reliance Capital, Tata Steel, Canara Bank and HDFC --- the US market got its aspirin in the form of its second quarter GDP numbers that rose to a healthy 3.4 per cent, the highest in the past 12 months.

Story in The Indian Express, July 28, 2007

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