The Indian Markets have become unpredictable for a few quarters. Big boys of the indexes have underplayed their hold. With disappointing results to allegations of mismanagement and wrongs mergers and acquisitions in the name of growth have actually hurt these companies.
The recent state elections results wherein Congress the principal party in UPA been performed very poorly, has anything but added more volatility in the markets.
So, what is wrong with our markets and industry, did we celebrate the growth of economy too soon?
The answer is YES, WE DID. The markets reacted to each and every baby step the industries took, by no means where they to be seen as major achievements. The business media and the trade analyst made sure that the stocks of such companies were well publicized.
Retail investors, who until such time were happy with 8-9% return on safe investments were lurred by such claims and wanted to hit the jackpot with ease.
The market regulator nor the Finance ministry, was not tracking the markets were on a bullish mode. Statements like India is future economy of the world, who will lift the recession etc were played in public. When there were allegations that FII/DII were the major players in the market. A single statement from the Finance ministry that these were all allegations made by vested interest who didn't want India to grow.
So, what is happening now, the loss of political stability, huge budget deficit, ECB(External Commercial Borrowing) have all eaten the apples in the companies, who are looking to reduce the interest and debts by selling once acquired companies.
Retail investors who had their savings invested in the markets are the first to bear the burn. Neither can they logout of the markets since leave alone the ROI, certain cases the capital has eroded such that makes no sense to come out.
India's growth story may be intact as per the Finance Ministry and the Planning commission, but the hard reality is IT IS NOT.
The sooner we understand the better. Already financial organisations including all the majore government owned banks have been burden with huge NPA's and scouting for capital infuse from the government. The conditions of these banks are just outside the ICU of hospital. If one major bank fails, will trigger catastrophic after actions which will be impossible to handle.
Your valuable review on the above blog is solicited.
The recent state elections results wherein Congress the principal party in UPA been performed very poorly, has anything but added more volatility in the markets.
So, what is wrong with our markets and industry, did we celebrate the growth of economy too soon?
The answer is YES, WE DID. The markets reacted to each and every baby step the industries took, by no means where they to be seen as major achievements. The business media and the trade analyst made sure that the stocks of such companies were well publicized.
Retail investors, who until such time were happy with 8-9% return on safe investments were lurred by such claims and wanted to hit the jackpot with ease.
The market regulator nor the Finance ministry, was not tracking the markets were on a bullish mode. Statements like India is future economy of the world, who will lift the recession etc were played in public. When there were allegations that FII/DII were the major players in the market. A single statement from the Finance ministry that these were all allegations made by vested interest who didn't want India to grow.
So, what is happening now, the loss of political stability, huge budget deficit, ECB(External Commercial Borrowing) have all eaten the apples in the companies, who are looking to reduce the interest and debts by selling once acquired companies.
Retail investors who had their savings invested in the markets are the first to bear the burn. Neither can they logout of the markets since leave alone the ROI, certain cases the capital has eroded such that makes no sense to come out.
India's growth story may be intact as per the Finance Ministry and the Planning commission, but the hard reality is IT IS NOT.
The sooner we understand the better. Already financial organisations including all the majore government owned banks have been burden with huge NPA's and scouting for capital infuse from the government. The conditions of these banks are just outside the ICU of hospital. If one major bank fails, will trigger catastrophic after actions which will be impossible to handle.
Your valuable review on the above blog is solicited.
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