Markets on Monday

Citigroup Inc (C) 1.97 -0.54 (-21.51%) 12:36 PM ET
C Quote (NYSE Echange)

European markets were the first to sense the danger of nationalization of US banks early in trade today. Citigroup was hammered in European as well as US markets in trade today. At this point, Citigroup lost 54 cents to trade at $1.97, a drop of 21.51%. Will Indian markets feel the jitters on Monday? Well, I dont see any impact on Indian banks per say. But, IT is going to have a jittery start for sure. TCS which bought over Citi's backoffice for Rs 2,400 crore should be in deep pressure. Nationalization of banks would directly impact outsourcing as critical processes cannot be lawfully outsourced. Given this, the deal is currently under question and the terms of the contract need to be read out. Infy and Wipro might follow suit and contribute to the fall as they derive considerable amount of revenues from BFSI. Lets wait and watch!