For the past few sessions,the attack is centralised on frontline stocks only despite support from govt funds.... govt arranging easy exit rout to few fiis in front line counters.... if this type of buyings continue by uti/lic,these organisations also will be in trouble in the near term.... if interested,select your choice of 3/4 quality midcaps of growth counters which are beaten down badly for investment.... ...

Dear radhika,is there any chance of psu banks failing during this turmoil.... few observers beleive today`s crr cut is mainly announced for survival of few psu banks.... so,now the banks are said to be alive atleast for some time.... but 60000 crores liquidty is just like peanuts for stock market fii outflows.......

Dear novice,the stock markets collapsed/crashed more than 50% within few months.... analysts have been telling us at diiferent stages as fair valued levels.... if felt 10000 is fair level,somebody talke 9000 and few otheres tell 8000 and so on like that.... now people are not caring health of markets,worrying about the welath of them.... many investors lost more than 90% investment in stock markets in recent times.... finally now,all the hopes are given up and specailists telling the poor fundamentals ahead with bad corporate performance in coming terms.... that is a cause of worry here......

Dear sri,if you or my self agree or not, the stock market has been collapsing for some time.... now the worry or the question is about the economy.......

Dear pratap,both fm and pm think they are great economists.... fm spoiled indian economy and pm did not do enything favour to investors as well as common man.... all his time spent to go around bush.... pm done only one thing, that is nuclear deal with geat difficulty,it is very early to predict the effect of this deal both socially and economically....

Both fm and pm will hardly be there for few more months in their respected posts.... need not worry about them and long term investors should not listen to them freqently because they are just short timers.......

It is surprise/funny to hear that infy has larger bench.... very sad to know that the utilisation level is just 74%.... the size of the bench may become bigger in coming days as they are already comited to new people....

Many companies are struggling for their survivals in IT sector,it is meaningless to see prolonged benches in the infy.... if the management continues to do so during this recession period,investors will not get any gains from the counter.......

Dear bhus,in powerful bear markets the scrips like reliance may not get more than 10 PE,evenif they give an eps of 1335,te scrip is fairly valued at 1335 in present mood.... due to poor liquidity or worst sentiment or weaker technicals may beat the stock to further lower levels.... pl note that it is passion for corporates to show reduced performance in bear markets.... it has happened with many corporates in the pasrt,why cant it happen from reliance this time?

Anywat,nobody caring about the fundamentals at the moment.... reliance giving great oppurtunity for realising cash.... fiis have been doing that job and domestc investors too started follwing them.......

What This Economy Means for You As the most serious credit crisis in decades rocks your finances, you`ve got to have questions. Here are the answers. Back in January, when it first became clear the economy and the markets were in for a rough patch, the consensus forecast was that we`d have seen the worst of it by now. Perhaps you put a bit more cash in the bank, trimmed the fat from your budget and tweaked your 401(k) allocations, but otherwise you were confident you could stay the course. Then came the extraordinary events of September: the government`s seizure of Fannie Mae and Freddie Mac and rescue of American International Group; the bankruptcy of Lehman Brothers and pending sale of Merrill Lynch; the first money market fund loss in more than a decade; a series of bank fire sales; and a politically charged federal bailout plan that could carry a $700 billion price tag. You can`t help but wonder what all this means to you. Here are some key questions, from when stocks could bounce back to what`s ahead for the economy and home prices. Choose a topic to get some answers. The Economy How Did We Get Here? By now you likely know that the crisis in the financial markets is the culmination of years of reckless mortgage lending and Wall Street dealmaking. It`s the final gasp of the burst housing bubble. But how exactly did this happen? To find the root cause of Wall Street`s woes, you have to go back to the collapse of a different bubble - tech. In 2001, after the dotcom craze ended and the bear market began, the Federal Reserve started aggressively slashing short-term interest rates to stave off recession. By eventually reducing rates to a historically low 1%, the Fed reinflated the economy. But this cheap money sparked a new wave of risk taking. Homeowners, armed with easy credit, snapped up properties as if they were playing Monopoly. As prices soared, buyers were able to afford ever-larger properties only by taking out risky mortgages that lenders were happily approving with little documentation or money down. At the same time, Wall Street investment banks got a brilliant idea: bundle the riskiest of these mortgages, then slice and dice these portfolios into tradable bonds to be sold to other banks and investors. Amazingly, bond-rating agencies slapped their highest ratings on the "best" of this debt. This house of cards came down when subprime borrowers began defaulting on their mortgages. That sent housing prices tumbling, unleashing a domino effect on mortgage-backed securities. Banks and brokerages that had borrowed money to boost the impact of those investments had to race to raise capital. Some, like Merrill Lynch, were forced to sell. Others, like Lehman Brothers, weren`t so lucky. "What we always tell investors is beware of too much leverage in a company," says Brian Rogers, chairman and portfolio manager for T. Rowe Price. "Leverage is the enemy of the investor." Sure, everyone from former Fed chairman Alan Greenspan to your friends and neighbors played a role in stoking this casino culture. But troubled banks and brokerages can`t pass the blame. "These firms closed their eyes and made very bad bets on risky securities that they didn`t truly understand," says Jeremy Siegel, finance professor at the University of Pennsylvania`s Wharton business school. "Investments that they did not have to make led to their demise." How Bad Could the Economy Get? Before the meltdown, economists fell into two camps: those who thought the economy had already slipped into recession and those who thought a recession could still be avoided. While forecasters still differ on the timing and severity of a downturn, "the consensus view is that we`re headed for recession and will be in one until next year," says Mark Zandi, chief economist for Moody`s Economy. com. Cont........

ALL YOUR ARTICLES ABOUT RECESSION AND STOCK MARKET CRASH IN YOUR WEBSITE ARE BEAUTIFUL, EXCELLENT AND INFORMATIVE. Why Americam management failed and resulted into great economic recession.? The modern (Western) management concepts of vision, leadership, motivation, excellence in work, achieving goals, giving work meaning, decision making and planning, are all well discussed and implemented but failed miserably. The greed is a more fundamental and better explanation than the principles of economics and the impact of government policy on economic decisions. Misses the point that most people and businesses are motivated to improve their condition and that this force is always at work. Why did greed suddenly cause this meltdown? What allowed it to get out of control. There is one major difference. While Western management thought too often deals with problems at material, external and peripheral levels, the Bhagavad-Gita tackles the issues from the grass roots level of human thinking. Once the basic thinking of man is improved, it will automatically enhance the quality of his actions and their results. If businessmen wanted to rape and pillage, I mean maximize profit, you wouldn’t have to force them to loan money. Their profit motive gives them an incentive to “serve” the community. If certain communities aren’t being served that signals the presence of other forces dissuading businessmen from selling their product or service. Implicit in this argument is the belief that customers have a right to demand the services and goods provided by businesses. Of course, this idea underlies arguments for universal health care and whatever other service or good deemed to be too valuable to trust to the market. The management philosophy emanating from the West is based on the lure of materialism and on a perennial thirst for profit, irrespective of the quality of the means adopted to achieve that goal. This phenomenon has its source in the abundant wealth of the West and so `management by materialism` has caught the fancy of all the countries the world over, India being no exception to this trend. My country, India, has been in the forefront in importing these ideas mainly because of its centuries old indoctrination by colonial rulers, which has inculcated in us a feeling that anything Western is good and anything Indian, is inferior. Gita does not prohibit seeking money, power, comforts, health. It advocates active pursuit of one`s goals without getting attached to the process and the results. The result is that, while huge funds have been invested in building temples of modem management education, no perceptible changes are visible in the improvement of the general quality of life - although the standards of living of a few has gone up. The same old struggles in almost all sectors of the economy, criminalization of institutions, social violence, exploitation and other vices are seen deep in the body politic. ...

Dear marketman It seems to me that Indian economy is not collapsing. Now it is the big guys in Indian corporate world is collapsing the Indian ecomomy. There is to believe that FLLs sell out. If the data regarding the trading pattern is revealed some truth will emerge. The collapse of this week orchestrated not by the FLLs but by the DII and majority of the promotors. They are trying to harvest amist choas. Until now they have some faith on Indian economy. Suddenly it appears to me that they lost faith in Indian growth story and let India fall along with the economic crisis. No such crisis is visiable in India. Except IT industry where there may possibility of stunted growth all other sectors are in good shape. Reality may like subprime problem see weakness, if IT industry goes for layoff or employment. The IT growth is one of the reason for reality boom in India and if it fails natually reality will be affected. One have to wait for the next cycle. Metal, sugar story also look weak. But in other sectors Indian growth story is intact and one need not to afrid to enter at current level. Do not hear the words of the experts. The are too smart and may not resort to "method of intution" under the present condition. Layman can win under the present contion than that of the expert/professional....

Dear marketman No our economy is not collapsing but yes has been largely neglected. Take for ex our financial minister and his MoF gang who do nothing but open their once in a while on budget day and spit out their badly researched, thought about plans for the coming year. Could you let me know till now how many corporates still have large I mean very large NPA`s which have been raised on very huge loans taken from public sector banks by using political contacts when actually rule book wise one wouldnt have got these corporate loans. Secondly almost all our finance ministers come from backgrounds which have no relation to kind of job which entails as a finance minister. Oil for now is at its lowest level a year ago and has the govt done anything to lower the price of auto fuels. No, simply bcoz our dear badly managed oil cos are busy happily writing of the huge debts before making their next move to bring down the price of auto fuels. The indian rupee has been propped up for long by the RBI to satisfy certain sections of the society having powerful connections within the ruling elite and the opposition. And lastly 90% of the investors are holding cash waiting and waiting for the mkt to reach its bottom which in my view will be never known. It will come and go as fast as the running train. Banks are struggling bcoz none of them wants a devil in their vaults ala the US. ...

dear marketman, Yes people are worried about the value erosion that is taking place in their portfolios. But it is a mix, some stocks are getting beaten down temporarily due to the weak sentiments and poor liquidity... and in majority counters the excesses are being taken out.That is inevitable. That is why investors are supposed ( and always adviced) to do enough home work before making any investments and they should understand that they are different from traders and they should always maintain their equity exposure levels at bearable levels. There is one simple law which all long term investors should keep in mind. When ever the sensex reaches PE levels which is higher than the expected average growth in EPS in the next 3 years,one should understand that those valuations are just paper valuations and a selling of 10% of the equity in such scenarios can make markets collapse. regards ...

Thanks marketman, no views on NIFTYBEES then? We should buy stocks which either have nil exposure to US or all exposure to US coz they can surprise only one way either up or down. Moderation that lovely trait has alwasy eluded the US genome, including its Financial industry`s genome. LOL Buying nifty bees could be dangeous consideirng the margins of TECH STOCKS could be hit if BPO operations wind up in India due to the recessin they are in... best is to buy BEL... their land bank in Bangalore is as big as USSR. lol...

Marketman, An investment in large caps is on everybody`s mind. Why go for nifty stocks in our portfolio, in case we invest in the wrong stock like ICICI or JP HYDRO. I think the best way to invest in nifty is buy NIFTY BEES, we can buy 1 unit too.. any disadvantages you are aware of in such an instrument? Do share ur views on nifty bees.. ...