Today the sensex ended by 484 points closing at 27687 and the Nifty by 148 points closing at 8363. The Nifty ended below 8400 below the psuchological mark. The markets are hit by crisis after crisis, first it was the weak quarterly results, and then came Greece followed by China. China was the the benchmark due to its new found wealth and it has become prosperous thinking that it can never look back. It being a Communist Government does not understand or cannot think to understand the Markets are supreme. The Government of China has been thinking it can support business forever and keeping its currency pegged to the dollar. Real forces seem to be not working in China it is a Government supported market. Now, the share market in China has come down drastically indicating weakness in demand in the Economy. But, the real tragedy is, commodities like steel have less demand now, due to China consuming less. That is why shares like Tata Steel have come down and shares like Tata Motors which makes Jaguar cars also have come down because of low China demand. Greek is another cause which has become bankrupt due to the austerity measures there with no income generated. It might come out of the Euro, as it has rejected the ban on austerity measures. Now, how will the banks support Greece, which cannot support its old debt. The silver lining today is Europe has picked up today as Greece has said it will hammer out a solution in 2 to 3 days. Markets are playing round to the news everyday, so one has to be careful while entering markets. Profits cannot be expected easily and fast, one has to wait for long before getting profits. As usual it is a good time for long term. Markets, will provide opportunity to trade if one keeps a watch carefully. Volatility is bound to stay.HAPPY TRADING AND INVESTING.
