It is true that in emergency situations in real life, crisis management becomes difficult and becomes uncontrollable even after deploying all resources at the command. For eg. when riots take place people are asked to stay in doors and curfew is imposed.
Exactly such situations also may happen even in stock markets despite ever vigilant SEBI and stock exchanges.
When panic engulfs valuations do not count.
It is better to prescribe lower circuits for all scrips under such cirmustances [say 10%] rather than imposing additional margins.
As the SEBI and exchanges are more informed and well versed they can take appropriate decisions to deal with such difficult situations.
However I want to bring to the kind attention of authorities that small investors are denied to buy the stock on fall, whatever may be the technical reasons, and they have lost the opportunity to recoup their losses, because they are not allowed to purchase.
I request the authorities to look into it and protect the interest of small investors.
It is very clear that people pay for their greed. This is not new. This happens at regular intervals but small investors do not learn their lesson. Small investors should buy quality stocks only with the purpose of wealth building on a long term scale. They should not speculate. Speculation should be safely left to the big sharks. Salaried people should go the Mutual Fund and SIP route to minimis their risks.
RE:Market Crash
by Kanhaiya on Jan 25, 2008 11:05 AM Permalink
Is mutual fund is safe. How can we say, that they will pay even the deposit money back when market will go down? From where they will pay back? Do you forget the NAV value of mutual funds in past which were less than Rs. 10.00. See the records for after the period Harshad Meheta. There must be system which can stop false selling by instutition when market falling and making worse to worsen.
RE:Market Crash
by Rajasekaran on Jan 25, 2008 11:19 AM Permalink
Mr.Kanhaiya, I said long term investing. One should not panic and sell immediately when the NAV goes below 10.00. One should invest in top rated Mutual Funds with proven track record and stay invested at least for a minimum period of three years. Five years will be very fine.
india and china will grow . there is recession in US market what we can do there the development is saturated so dollar is not required there it will come to india
RE:india
by super success on Jan 25, 2008 10:32 AM Permalink
don't worry small investor stay invested market will touch 50000 . dollar and yen are going to come to india and china so don't worry
If the market rumours are to be believed the crash was on behest of PC himself... it was done for some players to enter into the market... prior to this fall FII's were selling but retail was lapping it all, and it was frustrating for people who where wanting to enter the market... so all this drama....for the past 3-4 years only and only FII's are making money at the cost of retail investor... and guess what these stupid FII's are going and pumping this money ( our hard earned money) in the non perfroming US economy..... the retail investors in US are very smart they have duped these FII's( like CIti, MErrill Lynch, UBS,etc)... so we need to learn from them.
RE:Please explain te terms midcap,largecap etc
by Pankaj Rathi on Jan 25, 2008 12:22 PM Permalink
If the cap size is small compared to your head then its small cap, if you are able to sequeese your head in it then its mid cap and if its too loose then its large cap
RE:How much the market is expected to crash further?
by srinath rao on Jan 25, 2008 10:06 AM Permalink
yes dear brokers exchanges are idiots & you guys are god sent angels you see.. you guys provide loan to people to buy shares so that you can mint money even if the stock market is crashing but when exchanges ask you to pay more you want people to pay that amt ??? what is the risk in your business then??
profit mile to mava main hissa aur loss hua to ghata junta ka..
this market crash is a lesson to people.. donot borrow money & invest in stock market !! invest only if you have excess money. if not build that excess money & invest later.. don't fall for the stupid promises of the brokers.. even they cannot time the markets or predict a crash then whats the use of us relying on them??
What happened in Indian stock market was expected for a long time. One wonders what triggered in Indian economy in last six months for the market to rise 5000 points. Was the whirlpool of speculation not known to PM, FM, SEBI and others. Everybody was sleeping over it. What followed was systematic bloodbath by big players where small investors were duped of their money and were stopped from re entering the market. Everybody knew it, everybody followed it and let it happen and at the end blamed the market forces and nature of the market. Is it a transparent economy on part of our PM and FM.
RE:Well intended bloddbath
by feroj khan on Jan 25, 2008 09:53 AM Permalink
Yes. I do agree with you even. But let me share about maipulations little more.
The investors should relaise that when you fall from 3000 or 2000 index, the pain is lesser than when you fall from 20000 index. The investos should realise that it was fully appearing that stock has reached its peak. Here it was expected that a investor had to take a very calculated step, which was not done and the effect is all known now.
Even FM has categorically said many times that at this peak, we need a regulator unlike the earlier situation.But hardly he did any thing on this. So he knew this to happen and should own the entire responsibility.
Another aspect which is never given heed to by RBI / FM is that the accounts of every company is manipulated every time and the professionals who certify them are not bothered aboout the correctness because to oblige their clients or maintaining their pay packet. You know man this is very ridiculous to say that when the foundation is not correct and then when something happens wrong, then analyst's start opining that the mistake is that or this.
Grow up investors man. It is all herd mentality and it is very difficult to come out of this sin.
Further there is press, which will caryy some mechanism to damage the entire system more. They will publish some baseless, non-sense news that some body has committed suicide or one saying that he did not listen to his wife or parents etc etc and he lost so much.
RE:Well intended bloddbath
by Rajib Dutta on Jan 25, 2008 09:47 AM Permalink
Well said, Nitin. But who the hell is listening? Thousands of small investors have lost their money.
RE:Well intended bloddbath
by Rajesh Hunsikatti on Jan 25, 2008 09:58 AM Permalink
If the market rumours are to be believed the crash was on behest of PC himself... it was done for some players to enter into the market... prior to this fall FII's were selling but retail was lapping it all, and it was frustrating for people who where wanting to enter the market... so all this drama....for the past 3-4 years only and only FII's are making money at the cost of retail investor... and guess what these stupid FII's are going and pumping this money ( our hard earned money) in the non perfroming US economy..... the retail investors in US are very smart they have duped these FII's( like CIti, MErrill Lynch, UBS,etc)... so we need to learn from them.
