Me panic? I’m not panicking! Who is panicking?

By Reuters Staff
October 10, 2008

Would someone please remind folks that it’s Friday and we all deserve a relaxing weekend? I for one will be doing my usual Saturday morning Yoga. But it’s nasty out there – the contagion has spread, and panic is now the correct adjective.

The overnight Dow crash hit Asia hard – the Sensex is down at least 9 percent and looks like it’s headed for a holiday south of 10,000, the rupee has hit an all time low and in Japan the Nikkei tumbled another 10 percent. Looks like that decision to let Lehman go bust set off the mother of all chain reactions…and Indian markets may be headed back to 2006 levels.

Here’s our resident technical analyst Phil Smith:

sensex.gif…As the chart shows the SENSEX has broken through some very strong and very important support points in the past couple of weeks. These are clearly showed on the chart with the support at 11,900 to 12,500 being broken effortlessly. The next major support levels for this market now stand at around 9,700 as marked and coincides with the old support levels reached back in 2006 when the market staged its dramatic correction then. Currently all the technical indicators are bearish as they have been since the middle of September

Once again, all eyes are on Washington, where on Saturday President Bush (remember him?) will meet finance ministers from the world’s wealthiest countries. The IMF will be there too with emergency funds available.

But is this the time for traditional remedies? A coordinated rate cut by central banks on Monday feels like ancient history. So what’s next? The U.S. government is talking about taking large stakes in banks to ensure liquidity (meaning free marketeer President Bush may preside over the largest nationalisation of banks in history!)

And that’s what it may take, because every other kind of faith seems to have been tossed aside – banks are simply refusing to lend. Here in India, Chidambaram is still calling for calm – insisting the fundamentals are strong.

But can you expect Indian investors to lie in Shavasan while the rest of the world takes billions out of the markets? Your views are welcome, and please, try to have a good weekend.

10 comments

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Can you buy the BSE building???

Posted by madhu | Report as abusive

What’s not to panic if you have sunk your hard-earned money in the market? Maybe Yoga is the answer Greg. Try Shavasana…maybe?

Posted by Real Times | Report as abusive

Indian Markets now governed by FII which are criticaly hurt by meltdown in US & UK.We can be decoupled but not isolalated from Global happenings.Be Aware and Alert , this is the Key for Indian Investors.

Posted by Abhishek Vaishnav | Report as abusive

INVESTING IS SIMPLE BUT NOT EASY

Posted by alok sah | Report as abusive

No panic for me now..everything i had was lost a few days ago..now i have nothing to loose and nothing to panic.Thanx and happy weekend…

Posted by Om | Report as abusive

I guess chidambaram is doing his best in calming the already fallen market confidence. Its seen everywhere and that is what is needed at this point of time. When a nation of 1Billion trusts in their own(Indian) markets, which obviously are not “majorly” dependent on US, He’s not giving any wrong signals over there for me atleast.

Posted by vamshidhar | Report as abusive

Stock is, was and will be a risky business. So, let us all cry momentarily and then again indulge in the stock market. Human beings were gifted with short memories by the divine providence.

Posted by Salman | Report as abusive

It was a expected thing, the only people benefited by the market are FII’s. The comman man has lost much more money in shares. Now all are hoping at least MF’s should give some returns, otherwise it will be difficult to return to market again by a small investor.

Posted by Vinay | Report as abusive

If somebody related with the govt. and fin min shot in the market,why they are not banning shot selling as many countries does

Posted by Rajesh | Report as abusive

For me, am not panic because the money i have invested in shares is around one lakh and moreover its already under 80% loss, so not a big amount remaining to loose. Iam currently working in Europe and here the situation is worsening day by day ; In USA the situation is damn worse doesnt know what will be the future; Good news is that G7 is ready to support & save the banks if they are under crisis; Since our indian banks doesnt involved in sub prime mortgage business, the impact is less.Anyway, as Mr.Chidambaram said, we have wait and watch instead of getting panicked.I didnt see real estate market prices goin down in india and this ensures that our economy is sound enough to sustain during the crisis.Finally STAY COOL ,continue what you are doing now in a precise manner

Posted by Bobby | Report as abusive