The Hindu Business Line : External factors on top of mind!

US investment bank Lehman Brothers announcement regarding $350 million defaulted loans is not the kind of news you would want on a Sunday. Coming on the back of a great week, Khan and Dakshinamoorthy were hoping Indian markets remain ignorant. But will Dow Jones stay quiet, Jogin asked. Sridevi was worried about ‘slow growth’ but ‘less inflation’ stance of our Government. Cues seem mixed. Market Chat might throw up some answers.

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Jog: Is this Lehman news material?

Sri: Lehman was subject to fraud.

Dax: How? Where they sleeping?

Kay: Lehman apparently doled out $350 mn loans

Sri: Turns out da taker is bankrupt nw!

Dax: Secured loans?

Kay: (chuckles) So they thought. Not secured!

Sri: Da effect on our mkt cant be +ve.

Kay: These new things are coming at a fast pace.

Dax: New things?

Kay: Forex losses, defaulted loans, derivatives…

Sri: Corporates were sleeping. Waking up now!

Jog: What’s the next trigger for Sensex?

Dax: Q4 and annual results.

Sri: FY07 results for Cairn, Advanta on Monday

Kay: Inflation playing the spoilsport as usual

Dax: Its nt goin to go down

Jog: Worrying numbers. Close to 7%

Sri: More worrying is FM’s statement

Jog: Wat did he say?

Dax: “Govt will compromise growth to curb inflation.”

Kay: Hrd dat RBI is also looking at raising CRR

Jog: That’s real bad. Realty, banking will be hit.

Kay: Wat is CRR?

Kay: Cash Reserve Ratio.

Sri: Hiking it means less of liquidity.

Dax: Also higher interest rates.

Jog: Higher CRR is bad then.

Sri: On Oct 30, Sensex lost 400 pts on CRR hike

Dax: Auto sector is linked to banks. March nos out yet?

Sri: Nah. March and FY07 numbers to come

Dax: Mkts will take cues. Cement dispatches xpctd too.

Jog: Any stocks that I can buy dis week?

Dax: Stick to large-caps. Volatile week ahead.

Kay: Tech analyst says RIL, Idea, HDIL, Suzlon

Sri: Adlabs also. Downtrend is over. Going up.

Jog: Watever! The govt stance is bad for mkts.

Dax: See Govt is doin wat it shd do.

Sri: Plus it maybe da election yr nw or next!

Kay: Real news will be FY07 n March qtr results

Jog: Still external factors rule us.

Sri: US or us???

Kay: (smiles) Us, the Indian market.

Dax: Still we stabilise, FIIs too will stay away

Jog: No no. They bought late last week.

Sri: Total net invstment may be +ve for March.

Dax: New fiscal year guys nxt week.

Kay: Yes, FY 2008-09.

Jog: Hope it starts on a +ve note.

Dax: We have the new accounting guideline also.

Jog: Wats’ dat?

Dax: Asks to measure n realise derivative losses.

Kay: By whom?

Jog: By corporates of course. We shall overcome.

Sri: Have to cross Monday before. (logs off)

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Kum with inputs from Bad, Yog and Lee

Blog at http://MarketChat.blogspot.com