Privy

Image courtesy Zadeus on Flickr.com

The Indian stock exchanges today got a sound breather. Both BSE and NSE are up today. Thanks to the festive season of Diwali and also the Gujarati New Year. The BSE will be open for muhurat trading tomorrow between 6:15 pm and 7:15 pm IST.

It might be that a lot of people are considering these days as auspicious for investment and hence they are grabbing all the shares that are coming fairly cheap. But, a lot depends these days on the US market and the other world markets. Indian markets simply follow the trend of other markets around the world.

A lot of this is due to panic created among the investors and also the FIIs pulling out the money to balance their investments in other parts of the world. But, there are a lot of individual investors who put a lot of risk behind their investment, in anticipation, by borrowing money to put into the stock market. There are lot of cases of suicides every time there is a major crash in the markets.

Caution is adviced.

Bombay Stock Exchange - Image courtesy Zadeus on Flickr

Rumor mills are the only successfull business enterprise these days. Yet another rumor of Unitech going bankrupt has caused all the realty stock going bust on the BSE and the NSE. Unitech lost more than 50% of its value in a day. DLF and others were not far behind. Rupee value is at an all time low.

These are the tough times and rumors make them even tougher. We have not yet recovered from the news of ICICI bank going bankrupt, that we have one more. A lot has to be blamed to the big builders who have build a lot of big apartments, in high anticipation, only to find there is no demand or rather the demand is declining. Apartments with capacities in thousands have been springing in cities like Bangalore and we wondered when will this ever stop.

Now, is the answer. Latest news is that even posh apartments are being given out on rent. The builders are definitely facing a cash crunch and the falling price of realty coupled by excess availability has compounded their problem. Also, the global financial crisis have not helped them.

Who could have imagined a situation like this even three months before? Only if my portfolio were not red …