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Jogin (an economics student) and Mack (an American expat working in India) start celebrating Diwali before their friends Divya (a journalist) and Bidyut (an economics professor) can join them. Between bursting crackers and munching sweets, Jogin decides to tease Mack.

Jogin: So Mack, Alan Greenspan has finally agreed he

was wrong about total freedom in markets.

What next? Rolling back neo-liberalism and

going the Communist way?

Mack: (Suppressing a smile) Who knows? If this is the

state of the economy today, anything

could happen tomorrow.

Jogin: Greenspan is …

Bidyut: (Walking in with a packet of sweets) I knew

Jog would have started. Here Jog, (hands him the

packet) something to keep you occupied. Divya is

coming with more (chuckles).

Mack: But Jog has a point, you see.

Greenspan’s observations were distressing.

Bidyut: But not as disappointing as latest RBI’s

credit policy, I am sure.

Jogin: Ya, that was a damp squib. I had expected them

to ease monetary measures.

Mack: But they had already cut CRR and repo.

Divya: (Walking in with a packet of sweets) … and the

CII has asked for a further cut in CRR, for

‘economic growth’.

Bidyut: That is not surprising, considering that there

have been no positive surprises from corporates.

Jogin: I read in a newspaper that 40% companies

have reported loss or dip in profits in

July-September quarter.

Mack: More corporate results are slated for next week.

Divya: … SBI, ICICI Bank and some oil majors.

Bidyut: SBI is a well-covered behemoth. As for the oil companies, they would have to be wary with crude falling.

Divya: Well, one entity unhappy about the crude fall would be OPEC, and it has cut output.

Mack: One group ecstatic about fall in crude would be

the airlines. Alas, with OPEC cutting output to match

falling demand, their happiness could be short-lived.

Jogen: So what does that mean, more layoffs?

Divya: At least one real estate developer has promised

job cuts after Diwali. More could be in the works.

Bidyut: I don’t know about that but tough times are

ahead. Several analysts have calculated tight period for

corporates. Some have said the bear market is going to

last 18 months.

Mack: No one is happy this Diwali.

Jogen: Why not? A true-blue long-term investor

should be. I mean, when would he get stocks at such

rock-bottom prices.

Mack: Jog, let me warn you that this need not

be the bottom yet.

Divya: But what a fall that was. Sensex

below 9,000, whew!

Bidyut: Jog is right, this is the time for long-term

investors to make their moves.

Jogen: Meanwhile, others can sing, ‘Bear, bear, go

away, come again another day’!.

Ram with input from Bad

Blog at http://MarketChat.blogspot.com

More Stories on : Stock Markets | Stock Markets | Chat

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