Thursday, June 12, 2008

Further Fall in Indian Stock Markets

We have had two interesting developments on June 11, 2008. The first was the hike in the repo rate by the RBI and the second is the fall in Dow Jones by 200 points and a possible fear that oil might see another sudden spurt.

These are two interesting triggers for a fall in the markets. On June 11, 2008, the Bombay Stock Exchange rose 296 points to close at 15185.32. I expect the entire day's gain to be completely erased when the markets close on June 12 and most probably we should witness a 450-500 point fall towards the close. But the markets can be very volatile and how they behave, from 9.55 am when they open to 3.30 pm when they close, is any body's guess. I suspect unless the government comes in with some statements or announcements or unless the Asian and European take a breather, we are in for a good fall tomorrow.

It is already 3.30 am and we have another 6 1/2 hours for the markets to open. These falls are the best times to buy great shares at very cheap prices.

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