Published on Thu, Aug 23, 2007 at 09:56 | Source : Moneycontrol.com
Updated at Thu, Aug 23, 2007 at 13:14
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Subprime still a major concern: Gryffon Invt Adv
Anand Tandon of Gryffon Investment Advisors feels that political situation in the country will culminate into an early election. However, he feels that the US sub-prime mortgage problem poses a bigger problem for the markets.
The Sensex closed Wednesday up 259.55 points, or 1.86%, at 14248.66 while theNiftyended up 78.25 points, or 1.92%, at 4153.15. Asian markets are in the green on positive global cues. Crude is currently trading up 0.26 cents at USD 69.52 a barrel on the Nymex.
However, he feels that the US subprime mortgage problem poses a bigger challenge for the markets. Any fallouts or negative news could have a major impact on local markets, he added.
He expects the government to continue for the next 4-5 months, with differences emerging during the Budget in February or in May because of the plenary session of the NSG, which is due sometime in May 2008.
When asked whether political uncertainty had made the markets nervous, he said that we were looking at the current political situation not yet impacting the economic policy framework and that the government hadn't done too much in terms of reforms that would worry one. He felt if a new government were to come, then economic reforms would slow down.
