Indian markets aiming for the abysmal pits?
Its bloodbath, mayhem and carnage once again as the benchmark BSE Sensex, headquartered in Mumbai, was battered yet again on October 17, 2008 and its been hammered for quite some time now. Seems it will have to be business as usual for the regular investors(day traders & deliver based), arbitragers, stock brokers, HNIs, fund managers et al as some people survive purely on the financial markets, more precisely the stock markets. Here the question is about survival as thriving seems a distant possibility taking into consideration the almost consistent downfall, the choppy and flat markets.
Records show that it took 484 trading sessions for the Sensex to climb from 10,000 (on February 6, 2006) and touch an all time high of 21,207 (on January 8, 2008). However, it’s taken just 191 sessions to collapse to 10,000 and below! Furthermore it was Black Friday again on October 17…17 does ring alarm bells in our systems…May 17, 2005, days before the swearing in of the new Government, when the Bellwether index plummeted to terrible depths, triggering the circuit breaker. Such ‘freefalls’ can play havoc in the lives of many ‘players’, not only whitewashing their bank balances but also affecting their mental make-up, temporarily or permanently. Some of the punters, who can’t bear the bankruptcy stigma, end up laying down their lives and at times of their loved ones too!
Some snippets of the sequence of events culminating to Black Friday Oct 17- FIIs net sold over Rs.900 crores, fire sale of shares by financiers who had loaned money to promoters and HNIs against pledged shares and speculation on Dalal Street as to how many corporates are likely to default. The Sensex dropped to the day’s low of 9,911!
Most of the punters were/are puzzled by the sudden downturn, just a day after the Dow rose by 401 points. We all know that FEAR & GREED are key ‘instruments’, affecting the rise & fall of the stock markets, and here, Fear is certainly ruling the roost. So, is this a never-ending story or will the free fall stabilize at 5,000 points? As of now, its wait & watch…
Records show that it took 484 trading sessions for the Sensex to climb from 10,000 (on February 6, 2006) and touch an all time high of 21,207 (on January 8, 2008). However, it’s taken just 191 sessions to collapse to 10,000 and below! Furthermore it was Black Friday again on October 17…17 does ring alarm bells in our systems…May 17, 2005, days before the swearing in of the new Government, when the Bellwether index plummeted to terrible depths, triggering the circuit breaker. Such ‘freefalls’ can play havoc in the lives of many ‘players’, not only whitewashing their bank balances but also affecting their mental make-up, temporarily or permanently. Some of the punters, who can’t bear the bankruptcy stigma, end up laying down their lives and at times of their loved ones too!
Some snippets of the sequence of events culminating to Black Friday Oct 17- FIIs net sold over Rs.900 crores, fire sale of shares by financiers who had loaned money to promoters and HNIs against pledged shares and speculation on Dalal Street as to how many corporates are likely to default. The Sensex dropped to the day’s low of 9,911!
Most of the punters were/are puzzled by the sudden downturn, just a day after the Dow rose by 401 points. We all know that FEAR & GREED are key ‘instruments’, affecting the rise & fall of the stock markets, and here, Fear is certainly ruling the roost. So, is this a never-ending story or will the free fall stabilize at 5,000 points? As of now, its wait & watch…
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