Sunday, June 20, 2021
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Blood bath on Dalal Street!

It was blood bath on Dalal street on the first trading Monday of the New Year on our stock exchanges as share prices fell like a pack of cards on account of panic witnessed on the Chinese markets which had to be shut before closing hours as they fell 7 percent which is the statutory limit for a forced halt in that country. The world is aware of the problems in China where labour is cheap and they have mass production facilities but there has been a slowdown in demand globally for their products.

India is strategically placed to replace Chinese markets with good infrastructure available here, we have the technology and the manpower as well as good demand for our products both in India as well as abroad. All time low crude prices too is an added boon to boost our economy. The falling stock prices is a boon in disguise for long term investors who are getting an opportunity to pick quality stocks having high valuation at cheap prices and many even below ‘Book value’.

Investors should not panic at the jitters witnessed but follow the golden rule of the stock markets to mint money that is “To buy stocks when everybody sells and sell them when everybody buys”. India’s politics is the only worrying point where Parliament is disrupted with no business and important bills being put to the backburner. The courts should intervene to solve this imbroglio so that the development and progress of the nation is not stalled by our elected representatives!

S.N. Kabra

(The views expressed by the author in the article are his/her own.)

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