Global Doom & Gloom

This week was quite memorable. The markets were volatile, with the Sensex scaling a new high on Monday to fall on Wednesday. The F&O expiry witnessed a record turnover on Thursday. Quarterly results continued to be declared. The rupee continued its upward descent against the dollar.

On Friday, the Indian market closed in the red. But it was not just in India that mood was subdued. Global markets too felt the tremors of rising interest rate concerns caused by high inflation, rising oil prices which will further aggravate inflation.

World markets plunged on Thursday, hit by concerns that higher interest rates will hit profits and takeover deals. Rising interest rates have indicated that the days of easy money are over. According to observers, the tightening of credit is causing a lot of uncertainty. When looked in the light of the rising share prices been largely driven by takeovers - corporate or private equity, this does take on some amount of significance.

The fall was initiated by US markets. The Dow plunged 311.50 points to 13,473.57. The close was its worst since a 416.02 point loss on February 27, 2007. T he concern was that not only would higher corporate borrowing costs curb the rapid pace of takeovers but also aggravate the sluggish environment for home sales and the continued defaults in sub-prime loans.

But in London, the FTSE 100 rebounded into positive territory, easing fears that the share slump would be extended.

Let's wait and see.