CRYSYS... The US Meltdown...

Pick out any news paper of today, i guess we have around 65000 newspapers that are registered....

The headline for today is Financial CRISIS... Our country is being affected by the global crisis, that have started from US's sub prime loan issues... 

Well , its no surprise , if u look at the following few points.. you'll get an idea on the reasons:

1. Most of our exports in the US, if they go down,we need to bear
2. We have ample of foreign reserves in dollars, any change in their economy has a direct impact on ours.
3. Many of our financial institutions have a connection with the investment bankers of US and  Europe, The prob of foreign exposure can be seen.
4. Our Indian Stock market is very sensitive to information and sentiments, we are just followin the trend.
5. The US is slowing down significantly and the US investors are at risk. That is something, which is a serious problem. If you look at market behavior, over the last 10-15 years, whenever the Fed cut rates, it has normally been good for markets, provided that the US does not go into a recession.
6. There was a certain amount of FDI investments by Merrill Lynch in various India companies which would have a major effect on their future operations. Among them are two major real estate firms of India- 'DLF' & 'Unitech'. The net investments by Merrill Lynch which was wiped out turned out to be about $400 million.

7. Major sectors in India that would be affected out to a certain extent due to the current crisis are:

   • Banking Industry
   • IT & IT enabled services
   • Real Estate
   • Oil & Gas
   • FMCG
   
   

The other side of storyyy - greener side

• Seeing a silver lining in the ongoing global economic crisis, Indian legal process outsourcing (LPO) firms expect to get more litigation jobs-related projects due to the turmoil in US banking and financial markets.
  
• The good part of the story is that unlike China, which had an export oriented economy, the Indian economy was based on the domestic market.