When Diwali can not solve market slump, then I know, there is a market slump. This is one of those market slumps, and incidentally one which might affect me in a big manner. Previous few, one the Asian free fall and other the Silicon Valley’s valley, were two which didnt affected me for two good reasons, one I was too young for them to affect them, second India as a nation was still developing, and now, I am at the verge of joining (within a 2 years) corporate sector, and at this very moment we have this slump, and India is in pre-developed state. So, settled on one thing that I have got this wonderful opportunity to learn, to have better and brighter future, while accepting the fact that things are going to get tough. But what took me off my foot is the speculative nature of this slump. Actually, as far as my wisdom goes, there is no particualr slump in Indian market yet, but due to media coverage of international happening we are just blinded by global facts which will affect us in different manner that they are affecting Western markets, but they way most of us are looking it as the slump is going to affect us in same manner, and thus we have self inflicted slump.
There is no major factor which could have affected our buying nature, but still it is different in bad way. People may say that inflation has ruffled our feathers in wrong way, but here again, it is stable at and around 11% and will certainly come down. What I forsee is inflation around 7% by march-april. But still if you ask that whether India is well placed or not, my answer would be no. Because two important parameters which could have certainly helped us arent there, agriculture is down and we do not have enought power. India is in dire need of a revolution in both the sectors, and it has to start now, yes in down slide. Because down slides consolidates market no other thing, and a consolidated market for agriculture is in way a benefit, you have less confusion, serious players which better insight, and strict regulations. With strict one must remember that I am not talking about closed economy, but an open strict economy. Same goes for power, but power is capital intensive industry, and since there is stringent fall in market liquidity and heavy speculation, solving our power woes will be tougher. On the other hand, solving out agricultural woes is also not easy as it will require mass movement and better technology and scientific application. But who said that solutions were going to easy.
Market is not liquid enough, so one positive thing…we wont catch cold, bad thing: we may die out of heavy water loss. As far as you diwali shopping is concered, go out and shop, slump is not for you but for Americans, and if you shop well, then slump wont touch you. This reminds me of a wonderfull saying, that more you let Lakshmi go, more it will come. So dont try and stop Lakshmi, let her go, she will surely come, and more importantly your nation needs Lakshmi more that you know. Just decide where she should go, and how much, just take measure of your bedsheet, and decide accordingly. Things are not that hot, only 3% of our total economy lies in share market, and mind you we are a big nation, let not Share market alone decide whether its Bear or Bull run, let this Diwali be Owls flight…when whole world is in darkness let India see the bright side with Owls eyes…
As a learner nothing could have been better than a down turn, because its only at down turn when you can see underpants.