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Showing posts with the label Sensex

Are we ‘benching’ it right?

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O ne of the most important ways to gauge the mood of the Indian economy is through Bombay Stock Exchange’s Sensitive Index (Sensex). While it shows if things are hunky-dory in the economy than it is also supposed to reflect the depressing state of the market. The 30 share index is considered to be the economic barometer of the Indian capital market. Apparently, these 30 components are the largest and most actively traded stocks. These stocks are representatives of different sectors of the economy. Although they represent less than 1 percent of the total number of companies listed on the Bombay Stock Exchange yet they account for around 50 percent of the BSE's total market capitalisation. Indian economy is defined by the small entrepreneurs and not by the big brothers. The heavyweights are well-armoured to fight a declining economy and it is the small and mid caps that truly bear the burns of rising costs of funds, power, labour etc. This is the basic reason why the market i

Markets at life high but volatile : Investment Tips

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After crunching and falling to all time lows for about a year, the Indian stock market has seen nothing less than a miracle in the last fortnight. Now, whether this is a miracle for the tumbling Indian economy or for the ruling Congress led UPA government is still a question. Despite the turmoil caused by the geopolitical tensions over Ukraine, the economic barometer of Indian economy, Sensex, has spurted to all time highs breaching the 22000 point mark. The spurt is being attributed to a slew of positive domestic factors which have ultimately led to the robust inflow of FIIs (Foreign Institutional Investors). The positive sentiment on the Dalal Street is being attributed to the reduction in inflationary pressure, narrowing CAD (Current Account Deficit), and favourable results of the opinion polls. While the Trade Pundits were banking on Modi as the “only hope of the stock market”, the new data have shown that even a stable third front at the Center can propel the economy