As the US lawmakers have rejected a $700 billion package to bail out US companies out of their financial crisis, the BSE Sensex is likely to go for a sharp drop. The markets are under huge pressure today and are trading at record 2008 lows.
US situation:
Freddie Mac and Fannie Mae - Fed Bail out
Bear & Sterns - Gone
Lehman Brothers - Gone
AIG - Fed bail Out
Goldman Sachs - Not an Investment Bank Anymore
Washington Mutual - Gone
Europe on the other hand saw Banco Santander and RBS become larger banks by acquiring large banks. HSBC, SCB, Lloyds, Natwest,BNP, Deutsche and a whole lot of others seem to be holding ground in spite of the US meltdown.
Bank Of China and Sumitomo Japan and other large banks in Japan and China are looking at buying out US Banks and capture the Western Markets.
ICICI Bank is now highly vulnerable as they had made huge investments in the Investment Banks and have lost massively in the meltdown. Companies that were backed by these banks in India have now filed for bankruptcy. But will Indian banks want to buy any of the US financial organizations at this point and stabilize the BSE Sensex.
It is not the time to keep our fingers crossed but to make big decisions.
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| Author: SajithkumarS 30 Sep 2008 | Member Level: Diamond Points : 2 |
The markets have managed to recover from the day’s low’s as the trading restarted after the sun outage session and are now trading higher as some buying emerged among the selective scrips mainly led by the Realty, Banking, IT and Capital Goods stocks. The BSE Sensex is trading above the 12700 mark and the NSE Nifty is trading near the 3900. The BSE Mid Cap and the BSE Small Cap stocks have also recovered a bit but are still trading lower.
The overall market breadth is negative as 566 stocks are advancing while 1721 stocks are declining and the 65 stocks remained unchanged on BSE.
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