First, let see markets this week ---
|Index||Week ended Nov19||(%)||Week ended Nov 12|
People Bank of
said their reserve ratio would go up in 29th November by 0.5%. This is to control the inflation ( better to read as food inflation ) which hits a 2 years high 4.4% last week. This will be 5th time in this year & 2nd in this month. China
But the question will be, Is it all? Can we see any other act in coming weeks or days ?
GM’s $20.1 billion IPO will not only enable the company to reduce govt’s debt burden but also shows a little bit turnaround of American auto industry. But I think all that will be matter are the accounting figures & still there is govt debt that has to be repaid in future.
Coming week’s data for American market is quite important especially existing home sales & jobless claim data i.e.
Irish govt is deciding in a meeting in Sunday to cut it’s budgetary deficit which is almost more than 30% of it’s GDP. Well this step will be good for it’s economy but certainly this time still the important issue is it’s debt problem. The pressure from outside is big to take the rescue package.
Japanese market is little bit immune from the big corrections that happen in market like Chinese & Indian, few days ago. So it will be interesting to see the Japanese market in coming days, especially when YEN is again depreciating from it’s high.
This week Gold price was trying to break the $1360/ounce level but it fails to close above that. This may be due to many causes such as Profit taking, Chinese rate problem. It seems to me that we may not see a big up move in coming days unless these matters are solved. Nymex crude December delivery declined to almost 4% quite big.
In India realty sector is corrected much with Infra, but I.T. & Banking sector are not much corrected but latter half of the week banking sector is also effected.
In coming days the Telecom scandal may can determine the way the market will move. It’s a huge amount, that we cannot forget & names of some big companies are attached with it. The reaction we have seen in this week’s stock prices.
From the short-time prospect, Chinese & Indian markets are looking more cheap than other peers. But these two countries have to face two of their own missile - rate increase for one & telecom scandal for other. And we cannot forget the fact that we haven’t seen any big correction in Indian market yet !
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