PEOPLE WIN but not markets!!!!

The US sovereign debt might have got rerated on the grounds of slowing economy.  The cues from the Fed Chairman Ben Bernake are crucial for markets across the globe at this juncture. The QE-3, Quantitative Easing may prop up the sagging economy and may correct it in due course of time. The extra funding from Govt may give opportunity to US industrial houses to generate employment opportunities there by spending more to propel the recovery in economy. 

In this current scenario the foreign brokerage firms are putting India on watch, down grading the the SENSEX targets. The CLSA has down graded from 19,500 to 18,200 and Morgan Stanly has brought down the target from 22,750 to 18,850 for 2011. These firms have down graded India due to the global linkages and dependence that has increased from 2008 to current situation. The share prices likely to get de-rated depending on the emerging global scenario.

“There is a good reason to hope that the crisis is over in two to three years’ time”, European Financial stability Facility (EFSF) Chief Klaus Regling quoted while mentioning about the need for collaborative cooperative effort needed among the member countries to support for reforms and sorting their budgets. So the severity is sustained for next 6-9 months for sure. The markets across the globe will find only technical bounce rather than rallies in equities. The Switzerland banks are trimming their teams so banking professionals close to 10,000 will get their pink slips. The Euro zone crisis will have short-term impact on the markets across the globe but the de-coupling will emerge especially in India may be from pre budget rally in Feb-2012. The Europe and US debt crisis gets solution by fiscal stimulus is the remedy for foreign markets and policy liberalization is for our markets.

A positive note on inflation is from Goldman Sachs which predicts that the inflation may recede to 6% by March of 2012. The RBI has used 11 times rate hikes since Mar-10, to curb inflation but the petrol price hike coupled with product input cost rise on global front spiraled the inflation above 9%. The capital inflows to emerging markets like India will increase as the search for growth and safety intensifies.So we can expect trend reversal of rate cuts to boost the economy. The short week likely to close on positive news from the US and the Nifty may close above 4850 level and may wait for US president Obama announcement on 5^th which is may the main reason for Bernanke non committal at Jackson Hole, Wyoming.

The DOW and S&P of US are going to be listed from Monday on the NSE. In order to encourage participation, NSE is offering no transaction charges till 29 of Feb-2012.

ANNA HAZARE UNITED ALL: Anna Hazare who united Indian middle class who got severely being affected but scattered, to raise voice against ever talked and less addressed deep rooted corruption issue. Anna made the over whelming crowd at Ramaleela maidan to cheer on the achievements by forcing the central government to accept the JAN LOKPAL discussed in parliament. He ended fasting on13^th day, asking people to become ANNA by following and leading spotless character and sacrifice to fellow being. The media helped to highlight the issue and the common man voices were aired. The 74 yr old dedicated Gandhian follower maintained fasting for 12 days. He says next agenda is ready for electoral reforms agitation. His fight would be for “Right to Recall” and “Right to Reject”. The good beginning shall bear fruitful results.

Steve Jobs resigned: In any body’s life disease is curable but the death is not. The despair put’s immense pressure on the mind, when it becomes incurable leading to death. The Apple chief Steve Job, who built an empire against all odds, succumbing to such pressure, finds joy in living with incurable pancreas disease. He is a visionary, traversed India for enlightenment in Uttarakhand but could cleanse his soul found the strength to establish Apple Inc. with his friend Steve Woznaik, also a college dropout like him. Both sold their beloved goods and could gather $ 1300 dollars to kick-start the company in a garage. His skills and vision shaped “Mac” computer but Apple Inc became super rich with the success of it’s incredible products like iPod, iPhone and iPad that changed the mobile world, now under the leadership of Tim Cook, the then COO of Apple. He built an empire bigger than many countries reserve, with 100 billion dollar business growing at scorching pace, now the new management to take it forward to nest level.