Fears of blood-bath grips BSE, is it right to follow Nasdaq?
Mumbai: Last Friday was peaceful for the Bombay Stock Exchange since it was an official holiday. But, last Friday saw more that $1,000 billion in value being wiped off on the Nasdaq. The apparent reason for this fall, amongst the biggest in a single trading day on the Nasdaq, was the high inflation rate posted by the US economy. But the downtrend had already begun with market guru, Mark Mobius, having made statements against the internet-era stocks, which led the downslide.

The Indian stock market, the most prominent of which is the Bombay Stock Exchange, has, in the recent past, played to the tunes of the Nasdaq. But the fact remains that the Indian investors need not worry too much about the happenings on the American exchange. The fact that on Friday, even the Dow Jones, which represents the old economy stocks, tumbled to its lowest ever, clearly indicates that the markets did not target the new-economy stocks. The Indian markets, which have been booming recently on the back of the new-economy stocks, needs to take clear note of this.

Market participants believe that an upward movement in stocks is inevitable as fundamentals are good - GDP, industrial growth are on the right track, corporate results are expected to be better. So far, leading IT stocks Infosys and Satyam Computers have recorded `excellent' full year financial performances.

In any event, given this background, the players, especially the retail investors, are waiting with bated breath for the opening of trading in the Indian bourses on Monday.
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