Home > NIFTY Strategy > Political risk- Left parties threaten to pull down the Govt!

Political risk- Left parties threaten to pull down the Govt!

Saturday, August 18, 2007 Leave a comment Go to comments

We have the mother of all “risks” awaiting us- the left pulling out the plug on UPA government over nuclear deal. Suddenly a small issue has started to take center stage in Indian politics.Read this.

Logically the left should not be bringing this govt. down as they themselves are not in a situation to face the election at this point of time. But these “ideology” driven guys can sometimes act crazy(just like markets)!

It might just be another rheotoric but even slight whispers might result in India’s risk category upgraded to ‘high risk”. And you know how “risk averse” the world has suddenly become!

Bad timing! And let me tell you- these leftists don’t care about stock market crashes. For them “stock markets” are gambling dens!

Watch the market action closely on Monday as I believe some “insiders” would know whats going to happen on the political front. It might be interesting to see as to what takes more precedence- “good global cues” or “political “uncertainty”.

What do you guys feel about this issue? This too shall pass or do u think this might finally get serious. After all you can not mess with these guys’ egos for long.

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Categories: NIFTY Strategy
  1. Murtaza
    Monday, August 20, 2007 at 9:27 am

    True.

    But this time maybe bcoz of the known situation that come whatever, the deal will go through as the Left will loose a lot come mid-term elections.

    The US and the European and the inability of Asia to partake in the bounce due to the late announcements (done intentionally? so that some vested interests can make some killings in the Indian mkts? read it in an email in some group mail) ….

    They all make a cocktail, so as suggested by the expert, stay out when confused …. saves a lot of worries and a lot of cash ….

    this is a time to pick our choice ….

    The markets may be heading south as of now but this too shall pass (history repeats ..) and we shall be heading north in the future as we have always been …..

    Happy picking …

  2. ReyMax
    Monday, August 20, 2007 at 1:28 am

    20th Aug will be example of how wicked this mkt can be.

    I hv observed this behaviour so very often in sensex and nifty. Morning, the mkt will plunge dramatically till the brave hart …ooops, brave hearts turn chicken and sell in panic or get outlevraged.

    this is when the insiders you are talking about will be buying, just before the mkt recovers.

    Next day the mkt opens with gap up and zooms,
    giving traders 300 to 400 point nifty profit in 2 days.

    this is not a trading reccomendation. i am not putting any money on it. this is just an example of how sentiment can change the index by 10 % in 2 days.

  3. Shyam
    Sunday, August 19, 2007 at 9:48 am

    You are right !
    On Monday by 3:30 pm, the insiders will show us the
    “TRAILOR” of this movie, which can be taken as a guidance of the future course of action to be taken.
    Domestic political uncertainty will rule more than global factors, and it will have a major effect on market sentiments.

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