Tuesday, January 22, 2008

Sensex trouncing Hang Seng may not be that distant

[Another Volatile Day: Sensex ends down 875pts BS Reporter / Mumbai January 22, 2008
The Sensex opened with a negative gap of 721 points at 16,884 after the 1,400pt fall yesterday on weak global cues. The index hit the 10% lower limit at 15,889 within minutes, and trading was suspended for an hour. The index staged a dramatic recovery on resumption of trading, and zoomed to a high of 17,069. The index was unable to hold gains as a fresh round of selling saw it slide to a low of 15,332 - down almost 13% (2,273 points) from the previous close.
Fresh buying in the last one-hour of trades saw the Sensex recover once again and finally finish with a loss of 875 points (5% ) at 16,730 - a recovery of 1,398 points from the day's low. The NSE Nifty slumped to a low of 4,449, down 14.6% (760 points), recovered and ended with a loss of 6% (310 points) at 4,899. Business Standard]
Moneycontrol.com 2008-01-22 10:36:48 Source : CNBC-TV18
Union finance minister P Chidambaram said the economy is expected to grow 8.5% next year and 8.9% this year. So there is "no reason to allow the worries of western world to ovewhelm us, our economy is very strong," he reassured, adding that liquidity is not an issue.]
An analyst on TV advised the investors to remain calm and composed. The Finance Minister counseled nonchalance. So, to be a successful investor, one, it seems, must be a kind of yogi. For, booking profits by selling one's holdings on such days can be construed as immoral. Enduring the burden of notional loss for sometime ahead is rather virtuous.

Besides, there is the patriotism angle also. Just as the soldiers are guarding the country's borders, civilians having disposable funds must stay invested to protect the frontiers of our financial might. And then, Sensex trouncing Hang Seng may not be that distant. [TNM]

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