Last week the catastrophe hit Japan the million dollar question "Will this affect the Indian economy?",still is unanswered or rather manipulated by the most respected market speakers. The tsunami eroded the developed infrastructure. Don't you think this infrastructure was insured? and also few thousand people who were victims and faced death were insured. The insurance companies will have to negotiate on this and so have to sell their stake in market which they have invested in developing economies. I believe India stands one where Japanese firms had invested and are withdrawing their stake so we see SENSEX, NIFTY & NIKKEI moving down.Any catastrophic event will hit the insurance companies first and will have an impact on markets leading to selling pressure so the stock indices will fall. How can we forget the Tsunami in Katrina in last decade and its effect on markets.
The fact is that analyzing those historic events I concluded that it has similar effects on markets, crude oil, stock indices the only difference is Japan stands today and Katrina was the previous one.
Take a put call on NIFTY for this week.
KHP
Njoi making money
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