How have markets recovered after the August turmoil?

04 September 2007

CNBC-TV18 reports on how global markets and certain Indian heavyweights recovered, after the turmoil seen in August.

Analysts said that it has been a V-shaped recovery, globally and for the Indian markets. Shanghai is up, compared to its July highs. Hang Seng is one market that has recovered the most and is trading up around 1.5 per cent from its July highs. The Sensex is down only 3 per cent from its July highs and Dow is down nearly 4.5 per cent.

We have seen levels of 15,868 on the Dow and currently it is at 15,400. So, analysts added that there is only a meager 400 points to go on Dow for it to go on all-time highs.

There are markets like Brazil and Korea, which are still down only 5 per cent. These markets have seen a drop of 20 per cent from their highs. Some of the markets, which are still in negative are Nikkei, Russia and Taiwan, which are down 10 per cent from their all time highs.

If one looks at the pace of recovery, Shanghai has recovered 25 per cent from their lows. Hang Seng has recovered 17 per cent. The reason that Hang Seng recovered the most, apart from Shanghai, is that Chinese individuals were allowed to invest into the market. The inflows were the strongest in Hong Kong, to the tune of $67 billion, which were around 29 month highs.

The Indian markets have seen a V-shaped recovery. The Sensex recovered nearly 12 per cent from the lows and is down nearly nearly 3 per cent from their July highs. It recovered nearly 1,650 points, from the lows of 13,780, which was recorded.