Banking stocks lead sensex down in the vicious bear market
Prithiv Patel
Feb. 22, 2008

Indian banks are getting weaker as people cannot pay back their loans. Foreign banks are also in trouble. Sensex declined by 385.61 points to 17,349.07, with banking heavyweights SBI, ICICI Bank and HDFC taking a hit.

What has happened in Indian banks is pathetic. They have followed American model of financing. They created their own ‘indigenous subprime loan structures and credit derivatives’. They blindly followed the American ‘mantra’ without realizing that in recent days people with less than average IQ run western financial institutions. The result is that the Indian banks are in worst quagmire possible.

It is unfortunate that Manmohan Singh Government in India has tagged Indian economy to that of US by allowing unrestricted flow of foreign direct deposit money and Yen based carry trade.

As major Asian indices traded lower on renewed fear of the US entering into a recession, the big foreign financial institutions are dumping Indian stocks. There was no reason to take Sensex to 20,000 and then dump the same to take it back to 5,000.

Financial markets do not have room for people that are incompetent and inexperienced.

Banking stocks lead sensex down in the vicious bear market
Prithiv Patel
They blindly followed the American ‘mantra’ without realizing that in recent days people with less than average IQ run western financial institutions.
READ MORE>>

India in massive bear market – Sensex closes at 17,734.68
Babu Ghanta
Some analysts point to severe domestic inflation that was suppressed by artificial price control over the petroleum products can explode into hyperinflation as crude oil decides to move into $100+ territory.
READ MORE>>

Sensex moves down with a sharp reversal ready for the next leg of the bear market
Preeti Singhani
The index had gained around 1,500 points in the last three trading days last week – a clear indication of a bear market rally.
READ MORE>>

Indian bear market is a reality – the trouble has just started and Indian market is totally dependent on American economy and Wall Street
Suresh Rao
In the last Indian bear market of year 2000, the sensex fell 54 percent in 20 month bear market. In the last three weeks sensex has fallen 28 per cent from the high of 21,207 on January 8 and the low of 15,332 seen on January 22. But that is not all.
READ MORE>>

Sensex falls more than 5% on liquidity scarcity. Global stock market problems and selling by Foreign Institutional Investors
Sandeep Roy
The main problem with Indian the stock market is lack of global liquidity. The real value of Sensex is close to 5,000. Yen dominated carry trade and liquidity from the Western financial institutions created the massive bubble in Indian stock market.
READ MORE>>

Reserve Bank of India tells ICICI Bank, HDFC Bank, Yes Bank, Citi, Deutsche, Standard Chartered, HSBC and ABN Amro to stop selling exotic forex products
Nina Shankaran
Certain banks and financial institutions sold a lot of exotic foreign exchange products that eventually caused a massive loss for Indian companies in the export sector.
READ MORE>>

MORE ARTICLES >>