Ripple effect of Dubai crisis was in the clouds of Asia and markets in this region were opened sharply down however the surprise support of Abu Dhabi to the troubled company changed the mood of the market in the region. Markets' initial reaction to the Abu Dhabi move was understandably positive, with the cost of insuring Dubai sovereign debt plummeting by more than 120 basis points.
But the fundamentals have not changed. Dubai remains leveraged and in the immediate term Abu Dhabi is the source of financial liquidity. Including Monday's move, Abu Dhabi has pumped $15 billion into Dubai, with a further $10 billion coming from the United Arab Emirates central bank.
The capital market responded positively on this development ,Asia recover their initial loses and turned positive ,Europe opened 1% higher followed by US market.
INDIAN MARKET
India open slightly negative in the morning and recovered from its low and get in the positive territory however the inflation number trigger the sell of in the market in the afternoon session and market again turned negative at the cost of BANKEX ,technically market is in the range bound and very soon it is going to give a good breakout and march towards 5300 which is the immediate target of nifty in near term .
Tuesday is going to critical day for market and their is more chance is here that market will march ahead from here onward.
But the fundamentals have not changed. Dubai remains leveraged and in the immediate term Abu Dhabi is the source of financial liquidity. Including Monday's move, Abu Dhabi has pumped $15 billion into Dubai, with a further $10 billion coming from the United Arab Emirates central bank.
The capital market responded positively on this development ,Asia recover their initial loses and turned positive ,Europe opened 1% higher followed by US market.
INDIAN MARKET
India open slightly negative in the morning and recovered from its low and get in the positive territory however the inflation number trigger the sell of in the market in the afternoon session and market again turned negative at the cost of BANKEX ,technically market is in the range bound and very soon it is going to give a good breakout and march towards 5300 which is the immediate target of nifty in near term .
Tuesday is going to critical day for market and their is more chance is here that market will march ahead from here onward.
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