Monday, January 10, 2011

Market - The crash of 10.01.11

The Stock market - showed  fall - fifth day in continuity,  a loss of more then 1300 Sensex points in last five trading sessions, this is the unpredictable nature of  the stock market,
Reasons : !!!!!
- World economy still in very unpredictable state,
- Major concern for yesterday's fall -  Indian Governement is trying to curb the Inflation and RBI will come with increase in the interest rates in the upcoming monetory policy,

Interesting correlation-  To Curb Inflation - Increase of Interest rate,  and the Stock Market goes into TOSS........
Increase in interest rates-  Increased savings tendency, Tighter Money supply, Demand Fall, vis a vis supply position improves, Inflation is controlled/checked........

1 comment:

  1. Honestly Kuldeep, on a macro level, I look at every crash as a buying opportunity... :-)