1. US economy is in dumps and same is visible from the report that US, Lehman Brothers has filed for Chapter 11 Bankruptcy as Barclays and Bank of America have failed to progress on the talks to buy out the company.
2. In another significant development Bank of America has bought Merrill Lynch and the value of deal has been pegged at $50 billion and same has been undertaken as an all stock deal. Bank of America intends issuing 0.8595 shares for every 1 share of Merrill Lynch.
3. As a result of above developments it is likely that a global economic slowdown coupled with industrial slowdown is in offing. Thus one can safely conclude that FII flows will remain negative till the month of November.
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