Sell, Sell, Sell...the flavor this 'festive' season...in India
Avalanche, Tsunami, Earthquake, Cyclone, Hurricane, Whirlpool...just to name a few...are 'attacking' the 'Markets' worldwide and the Indian Markets can never be left far behind, they can go 1 step further. Bettering the battering...as hearts and minds go shattering on our Indianized version of the Wall Street, aka the revered Dalal Street. It was 'khoon ki holi' (Indianized bloodbath) amidst the festivities of Diwali, wherein ideally people are out on a buying spree, not only shares and commodities, but also sweetmeats, apparels, appliances, jewellery, et al. The 'festival of lights' has certainly become lacklustre for most of the Indians as they cant go on a shopping spree that they are used to!
Even though the Wall Street was the epicenter of the financial earthquake, the tremors were felt throughout the world. Presumably the Richter Scale, wouldn't have been in a position to measure the intensity of this 'quake', which will not only go beyond 10 but also be a recurring one, time & again! Friday, October 24, 2008 was another gloomy day in the chequered history of the Sensex. 1,071 points DOWN, yes, the benchmark Index tanked by over 1000 points, and its beaten black & blue yet again! Let's look at a couple of examples- biggies that reigned supreme in their sectors. Unitech, one of the most revered names in the Realty sector, which, some time back was selling over Rs.10,000 a piece, which was hitting the upper circuit almost everyday, which was at a 52-week high of Rs.547, last traded at Rs.30 on Oct 24, which means you buy a share of Unitech at Rs.30 odd each! How can we forget Suzlon, which was at a 52-week high of Rs.460 and was available on Oct 24 for Rs.47! There were MANY stocks which created 52-week LOWS on Oct 24 and the week ended on a highly dismal note for all those linked to the Markets, directly as well as indirectly. There are many investors who have bought stocks at a premium, on a relative high, so much so that the stock's value has almost halved, or even less! Many groan that the value of their portfolios is trimmed considerably by 40-70% and that they are absolutely in no position to sell. However people who have no other option apart from selling are a hapless lot. Mind you, its eery, very very scary...the question is- are we set to better the 'Great Depression'? The crash of 1929 began on October 24, eventually leading to the Great Depression.
With an 11% one-day Sensex loss on Oct 24, 2008, we are inching closer to the 13% loss on April 28, 1992 and may even breach the 13% mark! Some of the smothered countries across the globe are- USA, UK, Japan, South Korea and India. Not to forget some European countries and of course the Latin American. It was not long ago when every Tom, Dick and Harry would try his/her hand in the stock markets, many would and have even taken burdensome loans to invest in the markets. With the markets going kaput, most of them don't even have a clue as to how to get themselves out from this mess nor do they have anyone to bail them out. Agreed that most of the scrips of the 'A group' are fundamentally strong, however, are they strong enough to hold onto the sentiments of the common man, strong enough to keep them floating...well, seems doubtful. The fundamentals ain't strong enough to to cull the fear and panic, dominating the hundreds and thousands of punters/investors who are selling their stocks as if it Doomsday. Even though its Doomsday, it doesn't matter as the aftermath of the Doomsday would render the stock sale, useless. Only resilience, faith and patience will help people tide over these testing times.
Even though the Wall Street was the epicenter of the financial earthquake, the tremors were felt throughout the world. Presumably the Richter Scale, wouldn't have been in a position to measure the intensity of this 'quake', which will not only go beyond 10 but also be a recurring one, time & again! Friday, October 24, 2008 was another gloomy day in the chequered history of the Sensex. 1,071 points DOWN, yes, the benchmark Index tanked by over 1000 points, and its beaten black & blue yet again! Let's look at a couple of examples- biggies that reigned supreme in their sectors. Unitech, one of the most revered names in the Realty sector, which, some time back was selling over Rs.10,000 a piece, which was hitting the upper circuit almost everyday, which was at a 52-week high of Rs.547, last traded at Rs.30 on Oct 24, which means you buy a share of Unitech at Rs.30 odd each! How can we forget Suzlon, which was at a 52-week high of Rs.460 and was available on Oct 24 for Rs.47! There were MANY stocks which created 52-week LOWS on Oct 24 and the week ended on a highly dismal note for all those linked to the Markets, directly as well as indirectly. There are many investors who have bought stocks at a premium, on a relative high, so much so that the stock's value has almost halved, or even less! Many groan that the value of their portfolios is trimmed considerably by 40-70% and that they are absolutely in no position to sell. However people who have no other option apart from selling are a hapless lot. Mind you, its eery, very very scary...the question is- are we set to better the 'Great Depression'? The crash of 1929 began on October 24, eventually leading to the Great Depression.
With an 11% one-day Sensex loss on Oct 24, 2008, we are inching closer to the 13% loss on April 28, 1992 and may even breach the 13% mark! Some of the smothered countries across the globe are- USA, UK, Japan, South Korea and India. Not to forget some European countries and of course the Latin American. It was not long ago when every Tom, Dick and Harry would try his/her hand in the stock markets, many would and have even taken burdensome loans to invest in the markets. With the markets going kaput, most of them don't even have a clue as to how to get themselves out from this mess nor do they have anyone to bail them out. Agreed that most of the scrips of the 'A group' are fundamentally strong, however, are they strong enough to hold onto the sentiments of the common man, strong enough to keep them floating...well, seems doubtful. The fundamentals ain't strong enough to to cull the fear and panic, dominating the hundreds and thousands of punters/investors who are selling their stocks as if it Doomsday. Even though its Doomsday, it doesn't matter as the aftermath of the Doomsday would render the stock sale, useless. Only resilience, faith and patience will help people tide over these testing times.
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