oppn parties Beware of Fresh Highs in Stock Indices

News Snippets

  • Centre asks states to give shelter and food to migrant workers to stop them from taking to the streets
  • RBI cuts repo rate by 75 bps, the steepest in 10 years
  • Centre writes to states regarding laxity in monitoring people who had arrived from abroad between January and March
  • Kerala reports a spurt in new cases
  • With 124 fresh cases on Friday, the number of reported cases in India stand at 854
  • Five of a family, including a 9-month-old-baby test positive for Covid-19 in Nadia district in West Bengal on Friday
  • The Pakistani army is reportedly forcibly moving all Covid-19 patients to PoK and Gilgit
  • Untimely azaans in J&K mosques spark panic gathering
  • Stocks rise - Sensex up by 1400 points and Nifty goes above the 8600 mark
  • Rahul Gandhi says the economic package is "the first step in the right direction"
  • The government announces wide-ranging measures to help the poor overcome the economic hardship caused by Covid-19
  • G20 leaders to hold a virtual meeting today to explore ways of fighting Covid-19 in a coordinated manner
  • The Delhi government orders testing of all medical staff after the positive test on a Delhi mohalla clinic doctor
  • As a fallout of a Delhi mohalla clinic doctor testing positive for Covid-19, 900 people in the chain quarantined
  • China offers help to India in the fight against Covid-19 and says India will win the battle at an early date
Death toll reaches 27 as Covid-19 cases across India reach 974 on Saturday
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.