Wednesday, October 29, 2008

Our Sensex!


India was once proud of hitting the 20000 margin and this was not long ago. It was just last year. And now it has dipped under 8000. My god, what a crash. The graph beside this text shows the crash. Still what does sensex signify? How is it important to our country?

Sensex is the meter of any country's health. It is the cummulative impact of the belief of the people of a nation in their country's industry.
With a kind of faith and trust in the country's industrial growth. When the people invest or buy the shares of particulars, it signifies the trust and faith of people in the developement of country.
so when more and more people invest or buy shares at higher price rises sensex showning good faith and trust in current economy of the country and better future.
So for any country sensex is an identical sign of its health, strength and people's faith and trust in the current political status also.

Well, so now It seems that our people hav lost faith in the market. Investments are low. Its due to the fact that they dont want to take any risk involving their money much into the market. The US' market crash has impacted all the other markets in the world big time. This is a very pure example to show how big a super power US is. Everyone depends on them. India too.

But comparatively India has taken the bullet shot pretty well. The damage is certain but was not immediate, it was gradual. And this matters a lot because a sudden pit fall deals a great damage to an economy. Unlike other countries, Inda has managed well. But this doesnt mean we have nothing to do. Of course we have. The sensex is dipping everyday at an accelerated pace. Every effort should be put in to prevent this disaster. Just that we need the people's trust back into the market. But how? Surely no answer for that. But one thing is for sure. By using 'game theory' ( by. Dr. John Nash) we can say that it will surely take some time, a year probably, as people are not that dumb. Look at it this way. Share values are at a real time low. Its time to invest. India is a developing country, we have got the nuclear deal, are progressing awesomely in our moon mission. Infosys and Reliance have BIG plans, not to forget kingfisher. Kingfisher hasnt given up even under these situations. Mallya just wants to grow grow and grow. My god what a man. All these indicate towards one thing: Markets are bound to improve a lot. It may even cross the 20000 mark in 2 years. This should push some clever investors into investing. But the real question is where to invest now, and that needs to be decided by the individual. Cant still rely on mutual funds.

Our country is set to grow. Invest!

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