New Delhi: As the Bombay stock exchange benchmark index lost 540 points, it marked another difficult day for the markets; signaling a dismal week ahead.
A fall in the US markets has sparked fears of recession once again. Asian markets are selling off completely, there are fears of the yen carry trade unwinding.
Analysts are of view that markets probably had inkling from the investment banks in the US; perhaps somebody told the market that global markets will be difficult in the next few days and that was a fairly good estimate.
Too many people have been buying all the dips, saying that one should not worry but just think of a level. What’s a good level to buy 13000,13500, 12500? It's not about levels, it is about some changing scenarios in the global space, which one has to regard. It's not just about a price at which you buy and ride it back to a new high any more.
The reality is that there are more uncertainties right now; the market will adjust to factor in those uncertainties. If you do not believe that you will lose money, perhaps it’s time to be a bit realistic right now.
Markets have been weak for the last few days and it tells that the weakness isn’t over yet. But over the next few months and weeks, you will find weakness in the market coming back unless the global situation gets resolved.
One needs to be a bit careful about what is happening in the US, particularly with liquidity because the mother of all liquidity market continues to be the US. If something goes wrong and there is a perception that something is going wrong, you will find liquidity shrinking up dramatically and that is the big fear.
With inputs from moneycontrol.com
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