It reflects poorly on an economy with strong on going fundamentals that waits with trepidation for a regime change and within days thereafter, chases every other stock to new highs !.That swings will be wilder on say an Israeli- Palestinian flare up or even a substantial QE taper in the US is understandable but to be inexplicably swayed purely by endemic factors, must ride on reckless hope and perhaps greed. That said, weak fault lines continue to exist, be it in the narrow band of retail speculative stock transactions or the dated 30 component Sensex and in other sectoral shares as well. Sensex seems to be largely reduced to a day to day ATM for retail investors , which is fine except that swings then tend to become hugely separated from the core value of a stock . Indian stock markets still remain tied to its nascent days of a command economy wherein speculation and short haul political developments were content to feed on each other .The mindset continues to operate and small investors keep getting hurt.It is time that our stock indices get reworked and investors get wiser to a regimen where fundamentals start prevailing over raw speculation.
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