iCharts Discussions

[bharat1964]

ANY IMPACT ON MONDAY ? this news come after us market close

[rk_a2003]

It's an expected one. Not a surprise. Will it have a fresh impact on markets ?!.

Let's see.

[rajmuthusamy]

Reasons are:
Pension Funds / Municipal funds or selct private funds will have a mandatory provision to invest only in "AAA" rated secuirties. So, technically they need to exit and reinvest in "AAA" rated funds...though unconfirmed reports sugget the tune of $100 Billion - $500 Billion as a possible quantum - certainly it will have direct impact on securities..

It also depends on how the China's Government will react to this? they own around 41% of US secuities as of today..

It is the first time happened in US history and no one will be able to analyse / predict the impact accurately...Already S&P charts are technical break down (Head Shoulder Pattern), significant fall expected there...certainly sentiments will be negative fo the coming weeks...

[bharat1964]

rajmuthusamy thanks

[vinay28]

All money will flow back to India and other emerging markets. Who will want to keep money in US bonds and earn almost nothing?

[aromal]

[opportunist]

US market crash will lead to IT and US dependent company shares to crash. But diversion of funds to emerging economies may buoy up other companies in India.

So net net it will be a volatile condition in the next week (one day up next day down) before a direction is found by the market. It will be like Ajit's saying: Usko liquid oxygen mei daal do - Oxygen usey marne nahi dega, liquid usey jeene nahi dega

[rk_a2003]

UPDATE

Saudi Arabia Markets crashed 5.46% on saturday - A response to AAA to AA downgrading of USA.

What will be the response of Asian markets on monday.

[vinay28]

I think SA markets fell because of fear that oil prices will decline sharply. If that happens along with other commodities, inflation will go down in India and there may not be another interest rise by RBI. It will also increase margins for corporates. I am not sure oil price will fall a great deal considering that India and China are gulping oil. In any case, time constant for such realisation is 3-4 months. Confusion will prevail and those with wasted interests will only benefit.

[skkundra]

The decision to downgrade the U S A debt rating is a motivated one.there is a doubt about the intellectual honesty of the decision. Looks like the bear cartel has paid for it.Even after the error of two trillion was pointed out, the proposed rating was retained.Does the S&P honestly feel that U.K finances are in a better shape than U.S.A finances with 80%debt/GDP ratio as against 74%of U.S.A's.Gold went up in hyperbolic fashion and markets crashed just days before the annoncement indicates ulterior motives behind the move,of which the bear cartel was aware.the impact will be S&P may lose credibility rather than us debt,since immediately there is no alternative to such massive deployment of FC reseves of the countries.
i donot think it will bring down the indian market,althogh volatility may be higher on Monday.Futher,SouthArabian markets fell on saturday as it was closed on friday.That was in line with DOW's fall on thursday.

[veerappan]

too much of thinking about USA>>>> o my god.... people r wasting time ...if they r trading in indian market... they shd c only india... and indian prices....

too much knowledge will spoil the life wealth health.....

[skkundra]

and should only use numbers given by veeru without using their own knowledge because too much knowledge will spoil health ,wealth and every thing. but this is not applicable to veeru's knpwledge.[/img]

[vinay28]

Point taken