Market News

The recent turmoil in the global markets has created a big panic in Indian investors as well. The sensex is touching new lows every week! Investors have become pessimistic and are trying to short sell everything. Sebi is trying its best to control it but the kind of recession we're witnessing globally is bound to take its toll on Indian market. The recent move by Sebi to disapprove overseas lending and borrowing by FII's is one of the measures. Although one may say that it is not the right move since short sell is really not the reason of prices going down.

In my opinion, the long term investor should not worry much as the Indian economy is still growing at more than 7% and will grow at the same rate in the coming year as well.
In these challenging times, this rate is pretty good. The current picture is not rosy though! Although there is some sort of rally in the past few days but it is very clear that it does not have legs to go far. The upward trend will be seen only when people have some sort of confidence to invest money in the market. Seeing the current situation globally, it might take 6 months to 1 year.
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Talking about Software Industry in India, I think it is a mixture of good and bad news for them. Strengthening dollar has increased the margins for them but on the other side, there is a huge impact to the business due to the global recession and this will surely show up in the coming quarters. I myself work in a software company and have seen quite turbulence in the company recently. There are lots of changes happening in the policies to help the cost cut. The trigger though was given by the clients. They themselves are on a cost cut spree and are reluctant to start the new projects. The real effect will show up in the next six months. Hope everything comes on track as quickly as possible.

Peace