Walstreet Today : March 17,2008

Source : CNN.com

Markets ended flat after volatile session. Dow added around 20 points after losing at one time around 200 points with the news related to Bear Streams deal.

Events took place related to this volatality

1. JP Morgan Chase agreed to buy Bear for just $2 a share, or $236 million. That's less than 4% of Bear Stearns' value at the close of trading on Thursday. On Friday, Bear shares plunged 47% to close at $30 a share. One year ago, the stock was worth nearly $160

2.Fed emergency Meeting on Sunday : The Fed cut the discount rate, a short-term bank lending rate, to 3.25% from 3.5%, to promote more liquidity to the markets

What tomorrow : The Federal Reserve is expected to cut the fed funds rate when it meets on March 18,2008 which will be not less than 100 basis points as per the market expectations.

How it impacts India : With today's volatile session on Walstreet, Indian market also expected to follow the same trend as yesterday. But It can recover from lows as all these bad news already absorbed on Monday's trade which seen SENSEX tanking more than 1000 points with major contribution from Banks especially ICICI bank hitting its 52 week low.