IS INDIAN STOCK MARKET BEING MANIPULATED?

“The present slide of Indian stock market is due to global cues”, the market pundits are saying. By the very word “global cues” they are hinting to the “recession” of North American economy. All the major markets, including the robust emerging markets are showing weakness, and many are even hinting that the bears are taking over from the bulls.

To give a loose definition of recession: it is a contraction of economic activities spreading more than just a few months and becomes evident within a few months from the onset of it. The complex web of financial world which connects the world’s market makes it difficult to predict how the US recession will affect a particular market. So, generally many theories fly around. It is easier to press the panic button by one and for all. We have seen that rumors gain more ground than in normal condition.

Now we will come to know the “theory of decoupling of economies” will prove its mantle, as is being professed by many economists. But it seems the pillars of market are developing cracks, and may be it will be too late to welcome the onset of so called “decoupling of economies”.

Not going to financial theories and jargons, we should remember that the small investors are bleeding and the loss is far greater for small investors as they are not equipped to deal with falling market.

I always had some hunch of suspecting about the manipulation of our market by some unscrupulous operators. This particular view is probably shared by most of the small investors. We all will welcome the Regulator SEBI to play their positive role in this kind of manipulation if there is any.

Recently I have come across an interesting blog, which I think those who have the lingering doubts on market manipulation should go through it. LINK.

Can we do anything more than keeping our finger crossed anticipating the rebound of our market after the Budget session of Parliament?

MAKING MONEY IN INDIAN STOCK MARKET

"The market may test the last bottom again", a stern warning from different quarters.
"Stay away from market till it stabilizes. The market is under bearish fever." warning from another source.
"One should not buy in a falling market" - all the above warnings are from respected houses and pundits, when the market goes down.

"Ours is growth story", "difficult to copy our business model", "market is insulated from the rest of the world" and so on all the positive thinking from the same set of houses and pundits when our market was going up.

Why the contradiction of finding darkness in a lighted room? Very high level of spiritual intelligence?

To me the above is due to the heavy stakes the market pundits and fund houses have in the market. So they flounder and panick at the drop of a hat, and we have seen the grim faces of them in the TV screen recently. The same grim, smileless, serious faces in the TV which makes a mountain out of a mole hill everytime the market goes down.

Their heavy accent and drooping eyes make the small investors more nourvous, but they donot sell our stakes as fast as they advice and themselves do. We, small investors have our sweet time gap of selling and buying. And it is for various obvious reasons. We have experienced in most cases sweet time gap of selling and buying benefits us. Panick selling and buying are not for small investors.

We still make money and we take the correction as an opportunity to buy where-ever we zero in and whatever small fund we may have.

Can anybody lose money in a long time bull market.