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Industry fears big dip in market
Sunday | August 07, 2011
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Industry fears big dip in market
MAMTA SEN MUMBAI | 7th Aug
The Sensex crash of 700 points in Mumbai on Friday is being viewed by the business fraternity as a sign of things to come.
Paresh Khandwala, CEO and MD of Khandwala Securities pointed out that the current crash is mainly due to external factors like the compounded failure of the US to control its economy and the further worsening of the European and Asian markets. "Our openings too have been very weak for some time and this appears to be a continuous process. The economy too appears to be slowing down," he said, adding that the markets have been showing a slowdown since last two days and this was expected.
Pradnya Samant of the Maharashtra Economic Development Council pointed out that the US Congress' decision to increase their ceiling on borrowing by a few hundred trillion dollars gave a clear indication that the US economy is in doldrums. "The US budget has proposed cuts in defence, foreign aid and public spending. With America reducing its imports, the exports of Japan, China and Germany too will reduce considerably and affect their economy. India on the other hand has a largest population and major consumer of commodities. So with this current scenario import will become cheaper. But we will need to increase our domestic consumption," Samant said.
Credit policy analyst Makarand Wadekar adds that the Indian market will further lose 100 points on Monday. "Most MNCs in India are dependent on US for their existence," said he.
http://www.sunday-guardian.com/business/industry-fears-big-dip-in-market
• News
• Investigation
• Analysis
• Business
• Sports
• Resources
Industry fears big dip in market
MAMTA SEN MUMBAI | 7th Aug
The Sensex crash of 700 points in Mumbai on Friday is being viewed by the business fraternity as a sign of things to come.
Paresh Khandwala, CEO and MD of Khandwala Securities pointed out that the current crash is mainly due to external factors like the compounded failure of the US to control its economy and the further worsening of the European and Asian markets. "Our openings too have been very weak for some time and this appears to be a continuous process. The economy too appears to be slowing down," he said, adding that the markets have been showing a slowdown since last two days and this was expected.
Pradnya Samant of the Maharashtra Economic Development Council pointed out that the US Congress' decision to increase their ceiling on borrowing by a few hundred trillion dollars gave a clear indication that the US economy is in doldrums. "The US budget has proposed cuts in defence, foreign aid and public spending. With America reducing its imports, the exports of Japan, China and Germany too will reduce considerably and affect their economy. India on the other hand has a largest population and major consumer of commodities. So with this current scenario import will become cheaper. But we will need to increase our domestic consumption," Samant said.
Credit policy analyst Makarand Wadekar adds that the Indian market will further lose 100 points on Monday. "Most MNCs in India are dependent on US for their existence," said he.
http://www.sunday-guardian.com/business/industry-fears-big-dip-in-market
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