NriInvestIndia.com’s technical & fundamental analysts ( a global leader in NRI investing) states that the Asian markets would definitely see a surge in buying with context to this U.S. government proposed: US$700 billion plan to provide as a solution to the world financial & stock market crisis by aiming to rescue the big banks from billions of dollars in risky mortgage debt.
Analysts believe that the Fed would not let the whole financial system to breakdown the way it melted in the great depression on 1920s. At that point the system was not pro active and there were not sound measures that were taken due to which the whole world got into the hands of severe vicious circle of financial breakdown. Markets are well insulated now and there is no way that the fed and other big government banks of many countries would let the history to be repeated. As anticipated many major banks of the world have got together to save the global economy to go into the terrible recession. Witnessing such news coming from the federal bank, the Global markets rallied on Friday with the news tat Washington was likely to announce a bailout plan, calming investors worried that losses from bad bets on mortgages could bring about the collapse of more companies, straining an already weakened financial system and global economy.
As a rough outline of the plan took shape over the weekend, the Bush administration continued to lobby lawmakers Sunday for authority to use US$700 billion to buy up a mountain of bad debt at the heart of the crisis. While the proposed bailout lifted sentiment for the time being, there were still a number of uncertainties about the plan and the general health of financial firms that could further unsettle markets in the coming days, an analyst said.
NRI services head at NriInvestIndia.com – Mr. Akash Kumar states that: “This should block the bleeding wound, but the patient is still very fragile. We cannot comment much right now, but these levels could be considered as good points to invest into emerging markets like India, china, etc. Especially investing into Indian mutual funds could be of great return in the long term. Markets are certainly bottoming out and we may expect a huge inflow of FDI & FII cash coming into the Indian stocks”.