oppn parties Beware of Fresh Highs in Stock Indices

News Snippets

  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
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oppn parties
Beware of Fresh Highs in Stock Indices

By Slogger
First publised on 2017-10-17 08:37:22

About the Author

Sunil Garodia Holding an extreme view and carting the ball out of the park is what interests him most. He is a hard hitter at all times. Fasten your seatbelts and read.
Are the Nifty and the Sensex the true barometer of the Indian stock exchanges? Then how do you reconcile the fact that while the two indices broke fresh ground and registered new highs on Monday, the 16th of October 2017, the breath of the market was negative as more shares declined than rose? The NSE reported 813 advances and 920 declines while the BSE reported 1279 advances against 1420 declines on the day. Hence, an investor would be foxed if he buys some stock after careful research only to find that the price fell despite the Nifty and the Sensex riding high.

Investing in stock markets is becoming trickier by the day. A part-time player is more likely to lose money than make the promised big bucks if he dabbles half-heartedly in stocks. The main reason is that the stock markets are now, more than ever, being driven by a handful of players playing around with the stocks of a handful of companies. Even IPOs are becoming highly overpriced where companies are trying to squeeze out the maximum premium. Rumours and loaded tips rule the roost and gullible investors are burning their fingers.

The best option for investors is to either invest in blue chip companies on a long term basis or go for mutual funds that have a proven track record. That way, they will encounter less risk. If they wish to get into the action themselves, they would be well advised to start small by building a portfolio over a period of time. If one wishes to get rick quickly, the stock market is not an option. The best way to start is to first ignore all unsolicited tips and find good companies or mutual funds to invest in by spending some time researching and learning about track records of companies. Day trading is an absolute no-no for the uninitiated. Do not let the banner headlines of Nifty and Sensex hitting fresh highs get to your head. You are more likely to lose money if you rush into investing now.