Weekly Snapshot - Sep 22,2008

Market views and reviews :

A week of packed action in markets. Nifty made a new low for the year and gave an impressive pullback to 4200 levels. The strain in the global financial system clearly put pressure on Indian markets, Rupee weakened as low as 47 against the Dollar. In coming days global events and developments will guide the markets. Nifty is expected to be range bound between 4000-4500 levels. Inflation was at 12.14%.

World market views :

Dow had a roller coaster ride last week. Lehman brothers filed for bankruptcy as it was not able to raise capital to keep the business running. AIG the largest insurer in the world had to be bailed out by the FED.

The combined effort of major central bankers in the world relieved stress from the markets all over the world. They injected huge amount of liquidity into the system to avoid credit crunch.

US Treasury has proposed a $700 billion plan to bail out the crumbling financial system.

Morgan Stanley is in talks with China Investment Corp and Wachovia for a possible merger.

Oil gained 15% in 3 days, largest 3 day gain in last 20 years.

U.S. Economic Events:

Wednesday, September 24, 2008 : Aug Existing Home Sales
Thursday, September 25, 2008 : Initial Jobless Claims.
Friday, September 26, 2008 : 2Q Final GDP