Expert Zone

Straight from the Specialists

Temporary market correction an opportunity to buy

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Opposition party protests against the UPA coalition government’s economic reforms could not puncture market sentiment in the past four weeks. One domestic brokerage house dealer’s “fat finger” did it in just a few seconds.

Friday’s flash crash at the National Stock Exchange made some people doubt the exchange platform’s stability and the Indian stock market, which was brought to its knees within a few seconds with a 6.5 billion rupee selling order across 59 stocks.

The mood was buoyant earlier on Friday after fresh reforms announced the previous day, and I thought the Nifty was firmly on its way to 5,850/5,900 – until all hell broke loose.

Sharp fall in Nifty: Understanding flash crash, algo trading

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Global markets have witnessed flash crashes in the recent past, the most famous one being on May 6, 2010 when U.S. markets dropped 600 points in a matter of minutes, only to recover later. But the one which we witnessed Friday on the National Stock Exchange resulted in the market being shut for a while.

A gift for Mahatma Gandhi

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(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

Having replaced the feudal princes by colonising India, the British Civil Service carried on with the master-subject relationship which, understandably, entitled them to huge discretionary powers.

Markets Weekahead: Watch out for Nifty levels of 5,900, mid-cap shares to shine

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The week was expected to be volatile with a possibility of a minor correction but turned out to be one of consolidation. The Nifty closed at 5,703, higher by 12 points, its fourth straight week of gains. Indian markets have been among the best performing ones with gains of 8.46 pct in September. FIIs continued to pour in with last week’s tally at $1.42 billion.

Weighing the Obama-Romney calculus

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Much is at stake in the United States presidential elections this year, perhaps more in terms of policy than in the past few election cycles. The presidency of Barack Obama has been fraught with battles in a deeply divided Congress, leading to paralyses on some major agenda such as government debt, and significant compromises on others such as healthcare reform.

A good start but we need more reforms

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

It’s been a pleasant surprise over the last week or so as the Indian government appears to have transformed itself from allegedly corrupt politicians out to sell the country’s resources (read 2G and coal mines) into a group which means serious business.

How QE3 changes commodity prices

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

On Sept. 13, the U.S. Fed announced the QE3 program whereby it purchases mortgage-backed securities at $40bn per month with no time limit. It also pushed out guidance on keeping a low funds rate to mid-2015 from late 2014.

That’s the spirit, Mr Prime Minister

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(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

Manmohan Singh’s “if we have to go down, let’s go down fighting” comment is exactly the spirit which needs to be demonstrated by those in power. After all, desperate times call for desperate measures.

Some pain needed for long-term growth story

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(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

The senior Bush’s call for a new world order following the end of the Cold War began unravelling authoritarian regimes which formed its delivery mechanism around the world.

Trade freedom: how imports support U.S. jobs

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

Conventional wisdom says that exports are beneficial and imports are harmful. Conventional wisdom is wrong. A key element of this misperception is the mistaken idea that imports into a country cost jobs there. In fact, imports contribute to job creation.

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