Citibank bailed out, bear rout in doubt
============================
Citigroup Inc. shares more than 50% on Monday on the wall street,
triggering a massive broad based rally across the global stock
markets. It is definitely a rare achievement for Dow Jones to clock
back to back gains. Obama's new stimulus proposal and Chinese
government ready to extend help to come out of global crisis appears
to be the next ray of hope for the die hard bulls.
Indian markets closed flat yesterday despite of positive global news
flow. India’s economic growth outlook is “fairly robust” even as the
global recession deepens, the finance ministry said, highlighting the
strength of local consumer spending. “The macroeconomic impact of the
global financial turmoil has been muted due to the overall strength of
domestic demand,” the ministry said in a report released ahead of an
economics conference in New Delhi. “The fundamentals of the Indian
economy have been strong and continue to be strong.”
Indian investors/markets are a victim of global integration of
financial systems. FII pull out triggered the massive sell-off coupled
with domestic economic conditions. India’s benchmark wholesale price
inflation slowed this month to 8.9 percent after touching a 16-year
high of 12.91 percent in August, led by declining commodity prices.
We expect the inflation to slide faster in the month of December.
Metal stocks continued to get the stick despite of huge stimulus
declared by the chinese government with majority of the share to be
taken by the infrastructure development. The sector is due for a huge
re-rating but only on improving sentiment. The current positive news
flow is likely to propel the markets for the next 7-10 days and the
aftermath depends on the news flow at that point of time. Time for
bulls to ride the wave for the next 10 days.
Market Close Box:
BSE Sensex 8903.12 -12.09
NSE Nifty 2708.25 14.80
USD Rs.50.09
Oil Nymex $54.49
N.Sukumar.
Research Analyst
www.kences1.blogspot.com
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