Janata's Guide to Stock market

The Indian Stock Market defies all logic : It rises when everybody expects to fall and falls when everybody expects to rise. Market Manipulation is rampant. Here is a Janata's Guide to the Stock Market:


Once upon a time in a village, a man appeared and
announced to the villagers that he would buy monkeys
for Rs10/-.

The villagers seeing that there were many monkeys
around, went out to the forest and started catching
them. The man bought hundreds at Rs10/- and as supply
started to diminish, the villagers stopped their
effort. He further announced that he would now buy at
Rs20/-. This renewed the efforts of the villagers and
they started catching monkeys again. Soon the supply
diminished even further and people started going back
to their farms. The offer rate increased to Rs25 and
the supply of monkeys became so little that it was an
effort to even see a monkey let alone catch it.

The man now announced that he would buy monkeys at
Rs50! However, since he had to go to the city on some
business, his assistant would now buy on behalf of
him. In the absence of the man, the assistant told the
villagers. Look at all these monkeys in the big cage
that the man has collected. I will sell them to you at
Rs35 and when the man returns from the city, you can
sell it to him for Rs50." The villagers squeezed up
with all their savings to buy the monkeys. Then they
never saw the man nor his assistant, only monkeys
everywhere!!

Welcome to The Stock Market !

Butterfly Effect

The Butterfly Effect has once again take place in the global stock markets.

World stocks tumble on US fears - This is the second fall in as many weeks.

In India, The markets continue to trade weak in noon deals with the benchmark index trading 12,568 levels with a loss of over three per cent or 414 points.

Even though experts believe that long-term growth story is intact, they suggest that investors are interested in company specific investment ideas rather that buying the macro economic story.


The impact of these events on Indian Growth Story is anybody's guess.