Black Tuesday-Stay away from Indian Stock markets

Indian stock markets may lose heavily due to RBI measures to tighten inflation, bad news from global markets and unrealistic surge in the past 7 trading sessions. Black Mondays are common in Stock markets, but black Tuesdays are rare. Today we will see heavy selling from panic investors. Markets may lose around 400 points today. Day traders should stay away from markets today. Long term investors may buy some good stocks at low valuations in the afternoon session like Idea cellular.

News of the Day: The Reserve Bank said year-on- year inflation was higher at 5.7 per cent at the end of fiscal 2006-07, indicating more measures to tighten its credit policy to be announced on Tuesday.

Ceat and Bhrat Shipyard may gain today due to unexpected losses yesteraday.

Global Markets: All the global markets suffered heavy losses. This is a bad news for the Indian markets also. Indian ADRs were also suffered yesterday.

Positive news:

1. Idea cellular is on track to touch one billion dollar mark. This is a stock for medium-long term investors.
2. Matsushita Electric Works (MEW) of Japan, owners of the National and Panasonic brands, has acquired 80 per cent equity stake in the privately held Anchor Electricals for Rs 2,000 crore.
3. Adlabs Films is entering into distribution of non-Indian movies.
4. TATA Motors is launching "ACE" into Nepal market.

Bank stocks, Auto Stocks and construction stocks may available at low values in the coming weeks.