India's main stock exchange, The Bombay Stock Exchange, is in a record breaking mood- here is perhaps the irony. The record is of losing value. Last Thursday and Friday, Bombay Stock Exchange index fell sharply and after the two days (weekend) break when trading started today, there was no good sign and at one stage trading came to a halt for an hour. Fortunately, after trading resumed things became some better and in the end of the day- there was some sort of a sense of relief among investors. Well, state-run mutual funds and financial institutions bought shares to check the melt down.
Now, all the investors are eagerly waiting to see what will happen tomorrow. I checked many news sources today and I could not get any hopeful sign about the Indian share market. Now, the thing that we all have to ponder about is whether Bombay Stock Exchange has grown excessively or not in the last few months. If the index is over priced then it is natural that it will come down a bit more to adjust with its normal price.
At this moment, Indian government should come forward and help the investors everyway possible. The government should not let the situation go out of control. Indian stock market has just started to grow and it is yet to become fully matured. If the investors lose too much then many people will lose confidence and will stay away from share market for a long time. If India wants to sustain its economic growth then there is no alternate to keeping the stock market vibrant.
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http://zentrader.blogspot.com/2006/03/clouds-form-over-india-and-turkey.html
I posted this on March 06. Good luck.
Posted by: Anonymous | May 22, 2006 8:54 PM | Permalink to Comment