Equity Markets

[willsurelywin]

All major banks which r top clients of IT firms want a 15-20% cut in costs
Global meltdown may impact pricing of local IT cos- ITeS-Infotech-The Economic Times.


but can somone plz tell me what does it mean/

1) cut in pricing by 20%
or
2) cut in amt of volumes ??

how will it effect IT stocks as they aint falling much as vs other stocks

[konqueror_vivek]

Originally Posted by firewire1234

Well...for all those college goin guys... who think they are the masters of stock market... for all those who thought they can milk the money... here's an eye-opening article on how a collegian lost all his savings due to the greed of stock market!!


Article:This collegian lost Rs 40,000 at the market

It is true that Capital markets make people bankrupt, given the student has lost a lot of money, but it is a blessing in disguise, imagine if this stundet would had started speculation, say 10 years down, he would had lost even more and at that moment when he might have other bigger responsibilities as well.

Originally Posted by willsurelywin

All major banks which r top clients of IT firms want a 15-20% cut in costs
Global meltdown may impact pricing of local IT cos- ITeS-Infotech-The Economic Times.


but can somone plz tell me what does it mean/

1) cut in pricing by 20%
or
2) cut in amt of volumes ??

how will it effect IT stocks as they aint falling much as vs other stocks

The IT stocks have not declined from this level, one reason could be Indian currency got corrected to 41+ compared to dollar since Jan 08. However, on the other hand, US Financial institutions are looking to cut down expense, given the situation in US is -not-so-good as it was last year, Crude is climbing new heights each week, which is a major concern for buisness in the US and in emerging markets.
There will be decline in Sales / Revenue for big IT giants, however they might not be loosing margins, given the fact rupee has weakened when compared to dollar.

[willsurelywin]

yaar kamal hai
700 down today after yesterdays amazing rise
given up ALL the gains

i think 2 much is blames for elections but i dont think thats even a concern..

china has fallen 55% and we have fallen just 35%..
so if we also fall 55% we will fall to 10k which i think is a good buyin time.

this is recession time and just like euphoria toook sensex to 21k , depression will take it into 4 digits

[willsurelywin]

airlines r cutting capacity like mad now to cut costs Airline operators set to ground 165 flights also news that go air will close down and spicejet will be taken over by mallya........ i guess by sept we may see 50% capacity reduced this is worst nightmare for a aviation co. jet stock is now 300 from ipo price of 1100 lets see who survives this trought

[konqueror_vivek]

Markets are trading at dangerous territory, given Left parties have taken off support from the Govt, the equation now at the Parliament is even more alarming. UPA +including SP - Left - BSP = 281 - which is +9 from majority. However, 7 SP MPs might not participate, so the line becomes even thinner.
If Govt is unable to click majority the markets could tank down to 3200-3400 levels for Nifty. So be careful while you invest anything!

Cheers,

[andy_jaan]

Originally Posted by raghav507

hi Vivek,
i agree with you...
but as a matter of opinion I'd like you to see this article also...
i think tthis is possible in the near future...

I guess Swami himself has contradicted his assumptions in a more recent article, in this week's Sunday Times.

[raghav507]

Originally Posted by andy_jaan

I guess Swami himself has contradicted his assumptions in a more recent article, in this week's Sunday Times.

yeah Andy,
you are right...but he has given the reason for the same...and that too in an admitting way...
see the article...

[willsurelywin]

KOnqeuer can i kall us KV

r u sure markets can crash to 10k if maj is not proved?
anyways by when the govt will have to prove maj ??????????

[konqueror_vivek]

Originally Posted by willsurelywin

KOnqeuer can i kall us KV

r u sure markets can crash to 10k if maj is not proved?
anyways by when the govt will have to prove maj ??????????

LoL! I used that "KV" nick a lot, during IIT days, I had a strong addiction for age of empires in those days, however, this nick at PG is a derivative of that short name

If you see FTSE, DAX and CAC right now, all the european markets are trading at -2.50% average loss. Given these markets are far mature than our emerging indices, something big is turning up for sure, which is similar to what happened to us early this year when, Indian markets were rising and US markets were declining every day, there were analysts on various channels which have some belief on non-correlation theory, which didnt happened eventually.

At present, we have fallen ~41-43% from all-time-highs, which makes our market far cheaper than other emerging and mature markets. The country is the fourth most expensive market in Asia with a PE ratio of the Sensex at 13.86, despite being the second fastest growing economy in the region. It lags only behind China (21.26), Japan (16.38 ) and Indonesia (14.72). Compared with the US too, Indian markets are cheaper. The S&P 500 INDEX has PE ratio of 21.22 and Dow Jones has around 14.29.

There are two stories going hand-in-hand, one of which has strong reasons to show more downside for Indian markets, and other directs to upside, given we are far cheaper than other marekets if you consider valuations.

[shalabhkumar]

Originally Posted by konqueror_vivek

LoL! I used that "KV" nick a lot, during IIT days, I had a strong addiction for age of empires in those days, however, this nick at PG is a derivative of that short name

If you see FTSE, DAX and CAC right now, all the european markets are trading at -2.50% average loss. Given these markets are far mature than our emerging indices, something big is turning up for sure, which is similar to what happened to us early this year when, Indian markets were rising and US markets were declining every day, there were analysts on various channels which have some belief on non-correlation theory, which didnt happened eventually.

At present, we have fallen ~41-43% from all-time-highs, which makes our market far cheaper than other emerging and mature markets. The country is the fourth most expensive market in Asia with a PE ratio of the Sensex at 13.86, despite being the second fastest growing economy in the region. It lags only behind China (21.26), Japan (16.38 ) and Indonesia (14.72). Compared with the US too, Indian markets are cheaper. The S&P 500 INDEX has PE ratio of 21.22 and Dow Jones has around 14.29.

There are two stories going hand-in-hand, one of which has strong reasons to show more downside for Indian markets, and other directs to upside, given we are far cheaper than other marekets if you consider valuations.

Dude,

Quick points:

+ I dont see market falling more than 10% from where it stands today. My logic is that the day when left pulled the plug out from the govt the market went up. See anyways we have election early next year. So even if the govt falls then the election might happen few months before the schedule.
+ I feel the govt will prove the majority and will go for the N-Deal. I see this a major boost for the eco. If i have to pick between the Deal and early election, will pick the Deal.
+ I dont believe in PE and all too much. My logic is that if Sensex went till 21K few months back I m sure that after few months it will regain that level.
+ I havent seen any major eco decisions by the govt in last 4 years (no privatization, N-Deal, Indo-Iran pipeline etcs). So I feel the market was indifferent with the government. So even it falls who cares. Not that we are in between any major eco reforms

Thanks
SK