– The CITI bank news of cutting 50000 employees worldwide has sent the market cracking. India feared that Citi employees in India might also be shown the door and hence we saw the fall yesterday. Luckily it has been clarified that it would not happen in India as off now. Even HSBC has issued a statement that they would not cut employees in India. This will send the jobless data rising and that would be yet another reason for the markets to worry about. Companies here are already showing some stress and the reports of cutting productions, temporary shutdowns, voluntary leaves etc., would lead to job losses in India. It has not yet happened due to Govt. pressure but take it for granted that we would definitely see pay reductions in order to save costs.

– India did open higher today, but could not hold on as selling, most probably came yet again from the FII’s for want of money. There are some reports now that Indian investors are also redeeming and thus negative flows of Mutual Funds have been seen in recent past. These redemptions as per me are nothing but distressed selling. Investors are loosing patience and are taking this extreme step of booking losses. Indian investor in particular is more patience deprived as they had got habituated to double-digit returns every month. Iam happy that those fund managers who were promising 100% returns every month in Jan and before Jan are extinct species. The sad part is investors had to loose their hard earned money to teach them lesson, I can also put it in this way… The sad part is greedy investors lost their money who day dreamt about the virtual promises!

– MFF had given levels of 2525 yesterday where one can consider buying some stocks for trading purposes. As said earlier these levels may be absurd seeing the actual fundamentals but being technical levels they may be achieved once before market moves up again. Technicals show the levels and market automatically sends in the news so that they can be achieved, news like Citi, GM etc.