market at Lunch ( 21-08-2007 )

(1) Mkt loses further ground: Wipro, TCS top losers .
(2) India susceptible to a housing mkt crisis: JP Morgan

Adrian Mowat of JP Morgan feels the worst in global equities is behind us and the markets will gradually trade higher. The Fed may lower rates by 25 bps at its September meeting, he said, adding that the Fed is now concerned about growth rather than inflation.

Mowat feels that unpleasant news coming out from the US will continue. He added that the news is overly discounted.

According to Mowat, emerging markets have suffered from 'unfair' collateral damage. Investors have owned assets that they couldn't find a market for, so they sold off other assets such as US blue chips and emerging market stocks, he said. Long-term investors could look at this as a good buying opportunity, he added.

Mowat cautions that India is more susceptible to a housing market crisis than other emerging markets. He feels that select Indian companies are susceptible to credit issues due to ECBs and M&As. However, he is quick to add that there is no serious threat to the Indian economy.

He is also concerned with the political developments in the country and feels that it may depress sentiment.

(3) Europe market Open red.Impact Indian market in Lunch session.

Suggestions : Wait to Stablize the market .