Friday, January 25, 2008

Great Indian Bubble Burst- Stumbling of Indian Stock Market.

Whatever can go wrong will go wrong, and at the worst possible time, in the worst possible way
                                                                                                      -  Murphy’s Law            

Location Mumbai , Dalal Street
From 21 January 2008
to 21 January 2008

News from a website on Jan 21st:
        Mumbai, India : January 21, 2008 – A great crash in the Bombay Stock Exchange Sensex here today, it crashed by 2050 points, the largest fall in a single day and stumbled to a low of 16,963.96.
 The NSE Nifty fell by 714.70 points to 4990.30 points, down almost 12.5%.  Heavy selling by foreign institutional investors (FIIs) dampened the market sentiment.
The Sensex has been in the bear grip for the last five trading sessions with shares dipping to a two-month low.
On October 17, 2007, the Sensex plunged by 1,743 points. The Sensex hit a low of 17,307.90 points within minutes of opening, following which trading was suspended in the market for an hour.
 The markets had crashed on the wake of Securities and Exchange Board of India’s (Sebi) proposal to tighten the rules for purchase of shares and bonds in Indian companies through the participatory note (PN) route.


                                                     Jan 21st witnessed a great drama in dalal street.  The trading was stopped twice (i suppose).  Sensex experienced a  great fall. Trillions of rupees were lost in single day. Newspapers next day read:  Ambani brother lost 50,000 crore each!!!! Iam a novice in this arena, hence I sought out to find the reason for the same.

 

                                                    I think, it was all started with reliance IPO. FII’s pulled out money to buy reliance IPO and witnessing their weakness in the US market (resurfacing of sub prime issue), went on a rampage. It resulted in heavy sell off (almost all Asian markets got affected) .        

                                                    Suddenly a question now lingers in my mind, “Are we really ‘Incredible India !’ ’”. ? I feel we still did not reach position being incredible, but we are marching towards the goal. We are still susceptible to global cues.  
 
                                                     Things would have been lot more better if SEBI has regulated FII’s  more stringently. It has to be done in small steps. if not it would result in another great fall as we have seen on October 17, 2007(the Sensex plunged by 1,743 points).

                                          I feel one way mistakes can be a stepping stones to success, if we learn from those mistakes. Biggest blunder we made was believing in the effervescence created  by FII’s on Indian companies. Most of the companies was overvalued. For example, City Union Bank traded at 430.70 rupees on Jan 17th Jan  hit rock bottom(I should say, reached its intrinsic value ) .On Jan 24th,  ,  it was trading  at Rupees 44.50. It was all due heavy selling of shares of CUB  by FII’s in this week. I feel all our sins are washed away by blood bath that took place on Monday. 

 

                            I sincerely believe in the statement, “To Err is Human, to err twice is just stupidity“. I feel, at least from now investors will play prudently in forth coming days.

 

                                  On seeing all these things, I remember a good cartoon about share market.


                                                                           


 


PS: As I told earlier, iam a novice. Post presented above is from my view point and from my understanding of the subject. If you feel, my judgement is wrong, please let me know.Awaiting for your comments.

Posted by Ram in 13:41:32 | Permalink | Comments Off

Wednesday, January 16, 2008

Film review – I Am Legend (2007)

I Am Legend (2007)

Genre:  Sci-Fi


                                       I was alone in my home yesterday and i called up my friend to watch a movie. Since , there was no good movies screened in nearby multiplex, we decided to watch  “I am Legend”. To describe the whole movie in one word – “Bold” . It is indeed a bold move  by director to make a movie with just 2 “main characters”. – ‘Dr. Robert Neville and his pet dog ‘

                                       The movie is a story about lone survivor in NY. In NY, except him , everyone is affected by  deadly virus which turns all residents into Zombies. Will Smith has portrayed the character just aptly. Kudos to director for making a hero, a natural one without any “holly wood masala”. This film is just a visual treat for audience. Visual effects team  have done an  awesome work. There are few scenes which really touched my heart. Scene where in Will Smith search for his dog inside a Bank. Inside the locker room, there will be lot of  money lying all over but still he searches for the dog (Analyze the above scene in a philosophical pt of view. Logically, what is the use of money anyway?) , scene where he kills his dog and scene where he cries for a company. Will Smith stand outs as an actor.

                                             Though film has lots of positives, climax was unconvincing .I should say last half an hour was not riveting I felt second half could have been handled lot better. Though, this film is not in my “must watch” list, but it was a good one for spending your one & half hour. Make sure you watch it in a theatre otherwise you will miss out  all the fun.


Rating ★★★☆☆ January 16, 2008

 

Posted by Ram in 08:02:16 | Permalink | Comments (2)

Wednesday, January 9, 2008

Cricket, the Real Loser Contd……….

As I Predicted……………

From 2 January 2008
to 6 January 2008

                                 As I predicted whole drama of BCCI ended as I guessed , like ever predictable  Indian masala movies…………… I really don’t understand, when every one says “Ousting of Bucknor is victory”. I feel Bucknor is just a scape goat. Of course, I don’t say last match was just a bad day at office. I feel ,we left real culprits. TV umpire, Benson and Ricky Pointing went Scot free as if they were “angels”. In this juncture, I have few question in my back of my mind, why Gavaskar , who is in selection panel  did not recommend Mr. Hariharan , have decent track record as  umpire and why was not Ricky Pointing not banned, for appealing catch of Dhoni , knowing very well that he has grounded the ball(Rashid Latif was banned for false appeal, because as Captain he set a  bad  example. I think, Rashid is an Asian and Ricky pointing is an Australian, so different yard stick)?
                                I feel BCCI, ACB and ICC made truce in the “best interest of the game”. Best interest for ACB and ICC was money generated from the series and for BCCI , lot of things. Sharad Pawar contesting for next CEO of ICC has to earn good name among members and IPL wishes to draw lot of Australian players. BCCI had lot of financial obligations in the back mind, so it remained and will remain as a “toothless tiger” . I feel, when pride of Nation is at stake, financial obligation has to take back seat. BCCI acted otherwise. Though BCCI is a commercial heavy weight, did not act strongly. I feel , they have acted up to this extent  because of the  pressure from seniors. Yeah, they have to satisfy them too, otherwise they will jump to ICL.  

                                I really feel sorry  for Mr.Bucknor. Let God be with him.  Looking fwd for your comments………

Posted by Ram in 05:57:44 | Permalink | Comments Off

Monday, January 7, 2008

Cricket, the Real Loser

Second test between Ind & Aus

Location Sydney
From 2 January 2008
to 6 January 2008

                                       
                                     Second test between India and Australia turned out to be a night mare for cricket lovers. What should have been high tension drama between a team which tries to hit back after hitting rock bottom and team which tries to stamp victory again,  turned out be big blot in the cricketing history. I can understand , for a sportsman victory is everything , but that zeal should not overshadow sportmanship.Ricky Pointing is  a clear cut  example of ” ugly display of sportsmanship”. I feel, he desperately tried to equal Steve Waugh’s 16 match winning streak.To make the matter worse ,  bad umpiring helped Ricky’s winning march.  All these things , overshadowed brilliant and a valiant knock by Kumble. True Captain’s knock indeed. He stood tall among all ruins. He was a lone warrior fighting to save his side from losing battle.
                                        I firmly believe, “To Err is Human”, but erring 10 times cannot be classified under the above. Umpiring Standards had hit rock bottom this match. I was really taken aback when one of the Umpires , Benson referred Ricky Pointing to give decision. As Gavaskar told described , “It was utter non sense”. I second the statement.
                                       Now, I really wait to see how BCCI “really” reacts. I feel, BCCI will call truce with ACB and series will continue.  BCCI was never interested in cricket and all it got in its mind was money minting. BCCI will always be a “sleeping tiger” or “toothless tiger” or what ever you may call it. I feel ‘real’ loser was Gentleman’s game – Cricket.
    
                                      Let’s see how events unfold. Looking forward for your comments and views.
                                                          
                                
Posted by Ram in 12:29:42 | Permalink | Comments (2)