Hello Traders n Investors.
Indian Markets followed the weak global trends n opened gap down. US markets fell by 4% yesterday on the event of Bankruptcy filing of Nortel Networks. This will affect the earnings of few Indian Companies.
Infosys Technologies has outstanding receivable of $4 Millions.
Sasken Communications derives 10% of revenue from Nortel.
Nortel Networks have filled for Bankruptcy Under “Chapter 11” of their Company law which states that the the company will be allowed to carry on their business uptill they clear off all their debts. And after clearing the debts there will be possibilities of Re-structuring the management. Again this event will weaken the Indian Corporate Earnings which will lead the valuation to fall further.
Nifty has strong support of 2480-2520 levels from here. Keep an watch of Q3 results of frontliners like Reliance Industries.
