Figuratively yours!?
Now, to cross a milestone, one must at least travel a mile... right? Wrong! Not when you are dealing with the Indian stock market, where you keep running into one milestone after another, and that too in quick succession. The newest mile stone that the NSE & BSE notched up was to announce a market-wide combined turnover crossing the Rs.1 trillion mark. The combined trading volume of cash and derivative segment touched Rs.101,186 crores or close to $26 billion on Thursday July 26, 2007. The cash segment of BSE and NSE recorded turnover of Rs.5,719 crores and Rs.15,472 crores, respectively, while F&O segment posted a record turnover of Rs. 79,995.85 crores. But then as the saying goes, it takes ages to build and minutes to destroy. The panic selling of July 27, 2007, only served to remind how volatile Indian and other emerging markets are. The selling which was primarily induced by fears of slow US growth, wiped out a massive $424 billion in market cap from major Asian markets. Japan topped with a loss of $117.53 billion, followed by Hang Seng $61.67 billion, South Korea $47.17 billion and India $39 billion. So, what about India and its growth story? Well, that remains intact, as analysts are of the view that the sell off was more due to global factors andhad little to do with India’s fundamentals. The above-expectation results posted by heavyweights like State Bank of India and Reliance Industries is testimony to the fact. Small wonder then that ‘corrections’ like these are being lapped up by investors (who missed the bus) to enter blue chips, which were trading at significant premium, till now! Does your cup spilleth over?
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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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