How last week's crackdown in China on private lending could continue to impact global stock markets, including India's. Why this and Gujarat elections will take centrestage for stock markets.
Edited Highlights
1:34 The Shanghai Composite Index fell by more than 3% on Thursday
1.38 There is Chinese government crackdown that has taken place on online lenders and commodities trading
1:46 While the Index rose by 1% on Friday but given the fact that Chinese government is not a transparent one, especially with respect to their statistics
2:04 If such a government starts cracking down, it means that there is something seriously going wrong somewhere
2:20 I don’t think the trading curbs and movement of money out of China is a one off event
2:28 I believe there is going to be a follow-up
2:34 A lot of the rally has been based on the metal prices and stocks like Vedanta and Tata Steel have done well
2:48 If metal prices start taking a hit globally, then it will impact the stock prices in India as well
2:59 While falling commodity prices, especially crude oil, will benefit India
3:27 But it may cause a lot of the rallies falling apart and impact people who have taken positions in metal and mining companies
3:51 From here, you are not looking at a huge runaway rally in metal prices
4:19 As a theme this is going to take centre stage apart from Gujarat elections
4:39 If NDA is able to pull through with a reasonably convincing margin, it will help government do more reforms
4:54 If the victory margin in narrow, it will impact the ability of the government to carry out fresh reforms
5:48 In the pharma sector, men will be separated from the boys due to the pricing pressures in the US
6:45 IT sectors looks suspect as well. A mid-cap stock correction could be quite steep
