The Sensex has seen a free fall of 1,111 points today. This, despite the Finance Minister P. Chidambaram reassuring FIIs that there was no move to revisit the tax arrangement with Mauritius and no move to hike the long-terms capital gains tax from 10 per cent to 30 per cent.
So, what accounts for the mother of all crashes (besides the usual scapegoat, "uninformed reporting")? Is the dream bull run over? Are FIIs sceptical? Are there fundamental problems with our economy and stock market systems, or are we only reflecting global cues? Is the Left growing stranglehold on the UPA government taking its toll?
Do movements like these give you confidence to invest in the stock market? Are fraudsters of the Harshad Mehta, Ketan Parekh kind taking investors for a ride without SEBI knowing? Is the market really safe enough for you to put your dough despite SEBI's moves? Tell.
ALSO SEE: IS A STOCK SCAM ON THE WAY?
http://churumuri.wordpress.com/2006/05/02/churumuri-poll-is-a-stock-scam-on-the-way/
Im going to switch over to online sports betting for my online money making antics. this market swings more than waqar and wasim at their prime!! but online betting is a no-no in dubai and im in too deep to seel my shares now so i guess i just have to wait and pray….sigh!!
After all the cliches about global cues, metal meltdowns etc are reeled out, the Left parties should be held primarily responsible for the two biggest crashes in recent times. The first was on May 17, 2004, and now this. It is increasingly hilarious to see the Left woo capital in Bengal and drive capital out in Delhi/Mumbai with their intemperate comments. Their demands that dividends be taxed, that India get out its double taxation agreement with Mauritius are evidence of a rather poor understanding of the stock markets and foreign institutional investments. Having won Kerala and Bengal the prospects are scary, not just for stock marekt investors but for the citizens of the country.
Will those who called Manmohan and Chidambaram and Montek a “dream team” please stand up?
Will be interesting to know how the Deccan Airways and DLF IPOs will fare… The Week Magazine pegged the head of DLF AT rS. 90,000 Crores. Wonder what the “post bleed” value will be.
The stock market is actually a massive conspiracy formed by the government to mass extort money from its citizens :P
I wonder why we have to break our heads over every sock market fall. The stock market is a highly technical place, not for the faint-hearted, not certainly for those who have no idea of who/what they are dealing with. In the US, the small investor never has his hands burnt because he invests almost entirely through mutual funds. It is only in India that I notice ordinary, ignorant people being pushed into the markets by the government and the media. It’s they who need the most reassuring today, and the best piece of advice anybody can give them today is to relax. Markets go up, markets go down. You win some, you lose some.
No doubt stock markets is following the natural law, whatever goes up must eventually come down but there are other factors that is aiding this precipitous fall. After tasting victory in West Bengal and Kerala Praksh Karat had already given the warnig to the UPA govt that he will be more aggressive in their interferece. At least the comrades like Bhardans, Yechuris and Karats must be mighty pleased and celebratingnow with unconcealed glee. My own feeling is that it has nothing to do with market forces like global melt down etc Though it might sound far fetched my gut feeling is, it is the result of our HRD Minister’s move on reservation which our beloved PM has heartily endorsed has scared the foregn investors who think that since the professionals are being pulled down with the prospect of reservation in private sector loomiming menacingly in the industrial horizon the gamble is not worth it. It could be very much true is it not?
While one feels sad for the investors who lost their hard-earned money to the fluctuations, I hope something good comes out of this.
For one thing, it would be good to have a better correlation between the market index and general state of the economy, so investors can tread with more caution.
Also hoping it gives the market-centric media, government and the common man to focus more on the economic health of the country and not get buoyed away by mirages.
Thirdly one hopes it gives all of us especially the government & allies a balanced sense of economic responsibility by encouraging overall growth, reducing populism and irresponsible decisions.