Indian stock market now pegged to world indices with higher volatility – Sensex may drop below 14,000 before end of the year
Parth Sharma
Nov. 10, 2007

As Dow Jones Industrial Average races towards 11,000 from close to 14,000, Indian stock market has entered a long-term bear market. The oil price hovering around $100 a barrel is more negative for Indian companies than other companies in other countries.

Indian Government owned and run oil companies are bleeding for along time. India imports 70% of it oil requirements. The price of all petroleum products are subsidized in India like China.

Indian stock market was fueled by American and European financial institution that saw ‘gold mine’ in Indian stocks compared to American and European stock markets. The subprime mortgage fiasco has created the biggest possible bear market in the history of the international finance. Indian stock market unfortunately now is pegged to the world indices with much higher volatility. In spite of positive domestic economic numbers, India’s sensex lost more than 5% last week mimicking the world indices especially that of Hangseng and Nikkei. The Sensex ended in red right through last week, and dropped 5.3% (1,068 points) to 18,908. The index moved in a range of 1,272 points from an opening high of 20,009 to an intra-week low of 18,737.

Technical, quantitative and analytic models now point to a below 14,000 in Sensex at the end of the year 2007 and 11,000 for Dow Jones Industrial Average.

Indian stock market now pegged to world indices with higher volatility – Sensex may drop below 14,000 before end of the year
Parth Sharma
Technical, quantitative and analytic models now point to a below 14,000 in Sensex at the end of the year 2007 and 11,000 for Dow Jones Industrial Average.
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