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.
