The Hindu Business Line : Any clue where the markets are headed?

The market downfall can mostly be attributed to the sub-prime crisis in the US. The rise in the stocks prices of Indian companies was attributed to their strong fundamentals and the fall is linked to the liquidity crisis. Nobody is willing to enter the market even at low valuations. Investors now seem to prefer gold than the stock markets. But the good news for investors is that the Fed has recognised the recessionary trend and is willing to take strong measures to rectify it. The recent Fed rate cut might result in more liquidity flowing into the emerging markets.

Sobhesh Kumar Agarwalla, Ahmedabad

The market is often ruled by perception than reality. The investors generally have a herd mentality that makes them take wrong decisions. The markets across Asia have been witnessing selling pressure and their impact is being felt in India too. Though it is y felt that the Fed has caused the markets to fall steeply, the markets needed a correction.

K. Nagarajan, Erode

The market saw a huge fall due to the recession fears in the US. For the past two months, the Sensex is facing selling pressure. Investors are pessimistic about the markets. Our finance minister has advised investors not to panic as the impact of the US sub prime crisis on the Indian stock market is minimal. The domestic economy remains buoyant and it is probably the best time to invest.

V. Venkitasubrmanian, Kochi

As the negative cues keep pouring in, bears are having a field day. It may be time for long-term strategic investors to look at the markets now. The political scenario is not very encouraging and it is difficult to take a call on the market’s direction

Krithivasan, e-mail

Sensex, even at 14000, seems to be overstretched. The PE ratio of many of the companies are still high. Though it is quite impossible to predict the level, what is more important is whether the current situation should be seen as a buying opportunity or will the bearish conditions continue for some more time. If the present situation continues, people — who invested at 15,000-plus levels — may not be able to recover the losses for years.

K.V. Rao, Bangalore

Bulls and bears had kicked up a lot of dust. The market is volatile. Count your chicken before they hatch?

T.V. Jayaprakash, Palakkad

The market is affected by various factors and the manipulators take advantage of every available opportunity. We can only pray to save the small investors from further debacle in the market.

R. Swaminathan, Tiruchi

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