Last 5 days markets seem to be either very positive or negative. It was just a roller coaster ride. The markets went up and up on one day and next day it went down. I wonder what is going on with the investor’s sentiment. Aren’t they happy with the current scenario or not? What is it that is bothering the investors? I read couple of articles last week about the economy and most of the financial experts think that the economy is on the way to recovery although they have the usual disclaimer stating that it is just author’s views and the site does not hold any responsibility whatsoever. This clearly indicates that nothing is certain. Everyone is predicting and hoping that things go fine.
BSE Sensex opened on Aug 11 with 14,939 points and closed the shop at 15,074 points the next day it was not so good, it went further down and hit a bottom of 14,719 and recovered, the markets closed at 15,024. Aug 13 was a very good day for the investors, it poured money into their pockets like crazy the markets opened at 15,290 points and closed at 15,518. On Aug 14, markets closed at 15,411. On Aug 17, markets opened at 15,143 and closed at 14,784. The trend is not so very obvious or predictable.
The investors had their own concern of the agriculture driven economy. I don’t know how come they realized it only today, why not on Aug 13, I am sure that the situation of agriculture driven economy has not changed much from Aug 13 but still it had its own effects today. On Aug 13, investors did not bother about the agriculture, manufacturing and other related areas as they saw the Finance minister’s new proposal of tax and that made them pour the money into market and started buying the stocks as the day faded they realized that our economy is most agriculture driven and if there are no rains then the situation will be worse.
If you think over it rationally, does it make sense? It never makes sense to me. How can that happen? I have my own doubts when people think about the economy and so called economists who give at length lectures to people do really know anything about economy? Anyway I am not a financial expert or a guy who can advice others, but it kind of not makes any sense to me about the market situation. How can the markets behave so drastically in just two days with almost the same data? It is really a pity that the investors are not using their brains and they are just bound by the emotions and the news of the future which drives them. I know there are many issues and many are confused but I don’t think investors should be so confused that they change their decisions so randomly.
Engineer's Finance 