If
you thought the Monday mayhem was something, wait, there is yet another
bloodbath happened at start today. The tremors of the
S&P’s bold but debatable US downgrade continue to deeply cut world
markets. Predicting when the current tsunami will subside is like
catching a falling knife. Avoid needless bravado and wait for the
financial storm to pass.
Amid
the gloom and doom scenario, there are some bright spots for emerging
nations like India. For instance, crude has taken a big pounding and so
have other commodities (except gold of course). This is likely to have a
sobering effect on inflation. Also, the RBI may just refrain from
rubbing salt in the markets’ wounds by maintaining status quo on rates.
The Centre may announce a few big-bang policy moves as well, hopefully.
When
the dust settles on the global turmoil, India is likely to come out
relatively stronger and attract offshore capital. Still, there will be
lots of volatility and uncertainty in the short-term. Remain vigilant
and cautious. You will come across plenty of opportunities in the coming
days. It doesn’t matter if you have to pay some premium for stocks
later; that’s better than wiping out your capital now.
