Indian Share Market

[ankitgokani]

Hello MPites all of us knows that India Share Market is thru its tough times u can say the most volatile period in its history.
Where no predicton of any experts are working.Its not happening in India only but all over the world.

So whats next now

The FM says our fundamentals are strong we need not worry
some say wait for a year everything will be normal
some say its gonna be recession 2008
The global financial hurricane has swayed China and India only slightly, but the emerging Asian giants are not yet strong enough to drive a revival in world economic momentum, analysts say.

Different people have there different opinion so i want to know wats ur views and wats ur take cos we have many experts on MP who would like to comment on it

Plz Note: Dont put ur ans in 1-2 Lines eloborate ur thought and if any prsn uses any technical terms than plz explain it as others wud also undstd its meaning

And plz dont request for project in this thread as it is a discussion thread

[ROHAN KACHALIA]

Well definitely it’s a tough time for the stock markets, but I feel the main reason for this is GLOBALIZATION. If we had not globalized to this extent then the hard earned money of the investors would not have drained. But that’s a different matter altogether.

The point is, we are facing the heat of the global turmoil especially from the bankruptcy of the two famous I-bankers of the world. And when Fed tries to bail out the financial crunch in US by infusing $700 billion, there are chances that inflation rises up further and hence a negative effect on the growth of the economy. So if US slows down further, then we might even see Sensex close to 12000 points ofcourse not too soon.

Now coming to Rupee, it depreciated to a 2 year low on last Tuesday touching 46.99. And then RBI woke up to protect the importers and thus we see USD/INR at 45.70 (approx) levels. Now breaking of 45 levels can see one more round of intervention by RBI. And more importantly these importers and exporters are gaining arbitrage by booking Non Deliverable Forwards (NDF) in the off shore market and gaining 10-20 paisa and so on.

And now the safest heaven to invest is FD’s coz they offer a secured return after the maturity and then can reinvest the surplus into Stocks preferably diversified, so that losses are reduced.

And for those who are already stuck in the markets with huge losses, I suggest just go for a long vacation away from markets atleast for 6 months coz the sudden death of Wall Street could have a huge effect on the markets.

[manthan_479]

well i m not much of a finance person...but even i hav heard that Indias fundamentals are quite strong so we need not worry........so i wud like to do what exactly these fundamentals mean n hws its affecting the whole secne n does it hav ne relation to INFLAMATION....becos its on rise...............

[ankitgokani]

well Fundamentals are basics of the company like shares are traded at market price but fundamental analysis finds out its intrinsic value of its shares and buying or selling the stock based on that information ROI Cash flow are some of the things use to identify comapnies fundamentals

a nice example i came across
Think of the stock market as a shopping mall: stocks are the items for sale in the retail outlets. Technical analysts will ignore the goods for sale. Instead, they will keep an eye on the crowds as a guide for what to buy. If they notice shoppers congregating inside a computer shop, our technical analysts will try to buy as many PCs as they can, betting that the growing demand will push PC prices higher.

Fundamental analysts have a more staid approach. Their sights are set solely on the products in the mall. Shoppers are dismissed as an unreliable, emotional herd with no inkling of the real value of the goods for sale. Our fundamental analysts move slowly through the stores seeking the best deals. Once the crowd moves on from the PCs, they will take a closer look at the ones that were passed over.

Fundamental analysts might take a stab at determining the scrap value of the PC stripped down to its hard disk, memory cards, monitor and keyboard. In the stock market, this is akin to calculating the book value or liquidation price of a company.

They will also take a very close look at the quality of the PC. Is it going to last, or will it break down within a year? The fundamental analysts will pore over the specifications, scrutinize the manufacturer's warranty and consult consumer reports. Similarly, equity analysts check a company's balance sheet for financial stability.

Then, the fundamental analysts might try to understand the performance of the PC in terms of, say, processing power, memory or image resolution. These are like the forecast earnings and dividends identified from a company's income statement.

Finally, the fundamental analysts will put together all the data and come up with an 'intrinsic value' or value independent of the current sale price. If the sale price is less than the calculated intrinsic value, the fundamentalists will buy it. If not, they will either sell the PCs they already own or wait for prices to fall before buying another one.

[kartik]

figure that : BPO Sector's Contribution to GDP Indian IT - BPO Sector . Now once OBAMA is elected as president, he has vouched to SLAY outsourcing.

More than 50 % of india's population lives below poverty line. 20 % manages to survive and the rest are doing comparitively well. The salaries of managerial positions are over-rated and will be aligned to reality in near future.

Global recession is already here.

Club it all with high inflation and non condusive policies for SME's, the Stock markets are going nowhere

[manthan_479]

@ hey Ankit thanks 4 that example...understood well..... so it meant that Indiaas used its own brains 4 laying the foundation instead of following wat others do....

@ Karthik...so u say gr8 depression is comming...............?

[BizBlogged]

Share prices and Markets reflect the prevailing economic environment and their relationships with individual consumers of the world. It is difficult, hence, to pin-point a short-term solution to improve Indian stock markets.

[bhavul]

There is a global recession and I believe everyone must be cautious to invest.

[anteshk]

its a good time to invest because the shares of every company is going down and now u r in a position to buy stocks of certain good companies which will ultimately rise once the financial positions get good strong.

[sumanth4u16]

hi ............
this topic was very use ful................