Quick Summary
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Expect a market slow down in the short term due to US subprime woes
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More money being poured into India Stock markets
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Mutual fund money supplies have increased
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the corporate sector will grow faster than the unorganized sector
Even super bull Rakesh Jhunjhunwala says he believes that the next few months will be tough for Indian markets.
In a recent presentation to the students of IIT Mumbai, he approvingly quotes former US Federal Reserve chairman Alan Greenspan saying that “history has not dealt kindly with the aftermath of protracted periods of low-risk premiums.” He says the impact of the current credit crisis in the US will lead to a slowdown in the US economy, and that is bound to affect world equity markets. But the pain in India is likely to last for only a short time. “India may benefit,” argues Jhunjhunwala, “but only after an intermittent transition period.”
What’s the basis for this upbeat view? Continued…
Source: LiveMint
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