Denial Mode: Much more downside in markets

Friday, October 17, 2008

When the talking heads ask 'how much worse can it get in the markets?' you know that the community in India is in denial mode. It means lower levels for our markets.

Everything is pointing to a sea of red ink across Corporate India next year and beyond. This is not only a result of foreign investor reluctance but also government policies in India as written in my post 2008 and beyond: India Stock market.

Every investment bank and research house is now writing about the negative outlook for our markets. Banks are raising deposit rates even as inflation and every indicator is pointing downwards. Commodity and grain prices are all headed why are banks raising deposit rates?

A liquidity event of some sort is on the cards. The market is smelling and banks are being sold very hard...

Good News: The incomparable Sachin Tendulkar has broken the record for most runs in Test cricket and crossed 12,000 runs. For icing, Mr Ganguly has crossed 7,000 career runs in Tests. Bravo!

Here is a report card on our government written some time ago:
UPA Government 2004-2008: Rest in Peace

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