[ROHAN KACHALIA]

Well definitely it’s a tough time for the stock markets, but I feel the main reason for this is GLOBALIZATION. If we had not globalized to this extent then the hard earned money of the investors would not have drained. But that’s a different matter altogether.

The point is, we are facing the heat of the global turmoil especially from the bankruptcy of the two famous I-bankers of the world. And when Fed tries to bail out the financial crunch in US by infusing $700 billion, there are chances that inflation rises up further and hence a negative effect on the growth of the economy. So if US slows down further, then we might even see Sensex close to 12000 points ofcourse not too soon.

Now coming to Rupee, it depreciated to a 2 year low on last Tuesday touching 46.99. And then RBI woke up to protect the importers and thus we see USD/INR at 45.70 (approx) levels. Now breaking of 45 levels can see one more round of intervention by RBI. And more importantly these importers and exporters are gaining arbitrage by booking Non Deliverable Forwards (NDF) in the off shore market and gaining 10-20 paisa and so on.

And now the safest heaven to invest is FD’s coz they offer a secured return after the maturity and then can reinvest the surplus into Stocks preferably diversified, so that losses are reduced.

And for those who are already stuck in the markets with huge losses, I suggest just go for a long vacation away from markets atleast for 6 months coz the sudden death of Wall Street could have a huge effect on the markets.