Ugly Face of the Indian Stock Market

There has been an unusual change in indian stock market in last two or three days.

After a lot of despondency over the state of indian economy it had crashed below 7000 nifty50 and 23000 in sensex . it went to its lowest level in last two years.

Markets go on sentiment.

The rural push and a tinkering budget without vision led to more domestic players getting into panic selling to reduce positions and foreign fellows just not putting

in more money.

Banking shares hit new lows , specially PSBs. SBI made new lows close to 150rs and weaker banks still worse.Rupee went to new lows against the dollar close to

69rs.

Suddenly there was a change starting tuesday. All bank shares were on fire , steel, metals unfancied so far shot up, Auto mobile led by Tatamotors went up.

There was all round improvement in all sectors leading to a rise of 400 points in Nifty to 7400 and corresponding movement in sensex.

What happened?

No one knows.

Some say foreign investors have returned with a bang. Others say global sentiment is changing for the better.

Are our markets so much dependant on foreign investor money that that it can make a difference between prosperity and poverty.

Deep inside I wondered if there is a harshad mehta around .

There was a run up when the famous scam happened in early nineties.

People thought it was due to MMSinghs budget.

Later it was traced to a wily operator who diverted bank money into the market

Let us see how long the bull run lasts.

It is anybodys guess.

Caveat emptor. Buyer beware.

The monkey story is fresh in my mind!!

“ KAsumela…. KAsu vanthu….. kottukiRa Neramithu………
VAsakkathava …Rajalakshmi ……thattukiranermithu “.

Analysts say four reasons for upside

!.Foreign investors pumped in about Rs. 5000 crores

2.Cautious indian buyers returned with that to buy shares beaten down badly.

3. LIC now free of need to recapitalise banks due to banks being allowed to recapitalise their real estate at market value.

4. RBI going in more interest rate cuts.

If shares run up without any fundamental changes in economy it is no cause for cheer.

What goes up may go down again.

It may be wise to take out the gains which come on account of sudden rise and transfer it to post office savings bank or PPF .lol

hi

its called...MARKET VOLATALITY.....bulls and bears do the magic..stock .market always based on speculation...

Whatever is happening in our markets is due to opening of indian economy to global entities.

In last three decades, The rural income increased by 19% as against 370% increase in public sector employees average salaries and more than 1000% private sector

wages.Agri sector is at standstill at present and industry refuses to perform.

There is no reason for markets to do well without fundamental strength.

No economic model by any foreign returned economist can save indian banks.

All PSBs stocks will get reduced to penny stocks over a period of time.

We can do window dressing by revaluing their assets by taking their market value.

No way their NPA from wilfull defaulters can be recovered.

It is difficult to separate them from those whose business has gone down due to global reasons such as chinese downturn or american interest rate rise .

Some of us can be cynical and ride the waves in the share market. We can enter when the market dips and take the money out when it rises by a few hundred points and

exit.

It is like riding a Babbar sher as someone said.

We can feel good when we make money and pray the sher does not swallow the rider

If politicians can do that , then so can we.

It is beyond common man's understanding. Markets reacts to any thing and everything. There are instances where markets has crashed to incidence remotely connected any thing related to finance or money. Any thing happened in Greece or China, can easily shake our markets even though they do not posses any direct threat to our economy. It is simply speculation. Big shots withdraw their money whenever they feel have gained enough. Its stock specific. A close watcher can find it. Whenever there is a crash, big buying is seen on certain stocks which are fundamentally not so strong. This gives an indication that the big shots books profit on whatever they have bought earlier and park their money on comparatively lesser known stocks on a temporary basis.

GANESH65 said:

It is beyond common man's understanding. Markets reacts to any thing and everything. There are instances where markets has crashed to incidence remotely connected any thing related to finance or money. Any thing happened in Greece or China, can easily shake our markets even though they do not posses any direct threat to our economy. It is simply speculation. Big shots withdraw their money whenever they feel have gained enough. Its stock specific. A close watcher can find it. Whenever there is a crash, big buying is seen on certain stocks which are fundamentally not so strong. This gives an indication that the big shots books profit on whatever they have bought earlier and park their money on comparatively lesser known stocks on a temporary basis.

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Yes.Many times reasons would be attributed by the so called self styled analysts for the rise and fall.
Sometimes, if the pet dog of Obama falls sick, the Indian market would slide down; how sensitive and caring ............the market is ?
Indian share market is a play ground for the affluent FIIs, the Indian manipulators like P.C.s in the past... now Jaitleys.......... for their gambling.

Innocent victims, mostly, are innocent middle class who all break their heads with lot of calculations, logics, etc.
I know many retired officials who all saved money for several years through out their carrier, have lost most part of those hard earned savings, in a few months.

Many could boast that they are intelligent enough to know the pulse of the market and capable of sailing on the waves, and winds could survive for sometime.

For me, the most hated man in the share market arena, Harshat Mehta is my GOD for the reasons best known to me.
I have had some lots 100 or 200(including 110 of SBI) shares of blue chip companies in the 80s. I dried my haystacks when the sun was shining, bought an independent house and got settled.

After retirement, I have ample time but I don't have aptitude for trading; moreover, now, I started to try detachment from money and aspirations for further money and enjoy life by watching around what is going on and spending time without creating tension of any kind.

I too in a small way bought FERA dilution shares of MNCs and reliance in late seventies and used it to part fund in a small way to clear some debts.

Though I too benefitted due to rise in share prices due to change over to market economy in 1991, by todays standards it was not much .

For me it is just a sport. I play with small money.

My gains I normally blow off on exotic holidays.

It is one way of occupying myself.

Nothing more.

yesmohan said:

Yes.Many times reasons would be attributed by the so called self styled analysts for the rise and fall.
Sometimes, if the pet dog of Obama falls sick, the Indian market would slide down; how sensitive and caring ............the market is ?
Indian share market is a play ground for the affluent FIIs, the Indian manipulators like P.C.s in the past... now Jaitleys.......... for their gambling.

Innocent victims, mostly, are innocent middle class who all break their heads with lot of calculations, logics, etc.
I know many retired officials who all saved money for several years through out their carrier, have lost most part of those hard earned savings, in a few months.

Many could boast that they are intelligent enough to know the pulse of the market and capable of sailing on the waves, and winds could survive for sometime.

For me, the most hated man in the share market arena, Harshat Mehta is my GOD for the reasons best known to me.
I have had some lots 100 or 200(including 110 of SBI) shares of blue chip companies in the 80s. I dried my haystacks when the sun was shining, bought an independent house and got settled.

After retirement, I have ample time but I don't have aptitude for trading; moreover, now, I started to try detachment from money and aspirations for further money and enjoy life by watching around what is going on and spending time without creating tension of any kind.

Click to expand...

You got the knack to get out! This is a great skill bestowed on you! Well done!

yesmohan said:

Yes.Many times reasons would be attributed by the so called self styled analysts for the rise and fall.
Sometimes, if the pet dog of Obama falls sick, the Indian market would slide down; how sensitive and caring ............the market is ?
Indian share market is a play ground for the affluent FIIs, the Indian manipulators like P.C.s in the past... now Jaitleys.......... for their gambling.

Innocent victims, mostly, are innocent middle class who all break their heads with lot of calculations, logics, etc.
I know many retired officials who all saved money for several years through out their carrier, have lost most part of those hard earned savings, in a few months.

Many could boast that they are intelligent enough to know the pulse of the market and capable of sailing on the waves, and winds could survive for sometime.

For me, the most hated man in the share market arena, Harshat Mehta is my GOD for the reasons best known to me.
I have had some lots 100 or 200(including 110 of SBI) shares of blue chip companies in the 80s. I dried my haystacks when the sun was shining, bought an independent house and got settled.

After retirement, I have ample time but I don't have aptitude for trading; moreover, now, I started to try detachment from money and aspirations for further money and enjoy life by watching around what is going on and spending time without creating tension of any kind.

Click to expand...

hi

somebody's pain is somebody's gain.....

tbs said:

hi

somebody's pain is somebody's gain.....

Click to expand...

Certainly !!
Some unknown who bought 100 numbers of SBI shares (face value Rs 100/- cost price Rs 300/-) @ Rs 13800/ per share (price went above 22700 on a day but subsequently fell down to less than 2200) did not get the shares transferred to his name for two years,presumably, on account of frustration; The dividend warrants were sent to me as I was the holder of the shares, in the books.