Armed With ‘Above Normal’ Monsoon, Markets May Rain Money

We have devoted a significant chunk of this edition to the issues related to various interventions by the market regulator, capital market entities and protection of interest of the investors. In recent times, we have been observing quick and steady actions being initiated by SEBI, BSE and NSE against errant entities which may cause significant harm to the interests of investors hooked to stock markets. Though most of these actions initiated against entities with dubious intentions come as a rude shock to investors and at times they even feel confused, if thought well and understood properly, the actions taken actually guard the investors. I will take this opportunity also to raise the point that even before this government took charge of the country, same set of rules and regulations were in place but SEBI did not do much when it comes to actions.

Since last two years, there is a significant change in the ways of SEBI’s operations and most of this is investorfriendly. The government needs to be praised for the same and also the market regulator. Meanwhile, I still find SEBI needs to act faster and come out from certain bureaucratic hurdles. I am sure, someday soon this also will be achieved by the market regulator and entities under its governance, like BSE and NSE. Nothing much has happened since SEBI assigned its sub-committee to probe into the alleged Dark Fibre case mainly involving NSE while we also learn that the sub-committee has already submitted its exhaustive report to the market regulator. So investors at this time are eager to know the truth in the allegations levelled against NSE and they also have the legitimate right to know if the largest stock exchange in the country had actually extended ‘undue advantages’ to some entities as alleged before. We will hope, whatever the case may be, transparency to be maintained by both NSE and BSE as crores of investors simply put their faith on them.

Meanwhile, some positive news comes ringing in. An above normal monsoon prediction by IMD which we too have talked about in the previous issue, has changed the market mood and while writing this for my dear reader-investors, I note Sensex added over 600 points during trading hours of April 12 and April 13. Recently released CPI and IIP data also reveal the country’s economy is getting stronger from here. Global agencies too have seconded the same. ‘Acche din’ seems to catch up with all of us soon!Our research team has come up with the analysis of Eicher Motors while a special story has been presented in this edition on the gems and jewellery sector.Summer has finally arrived and it is felt almost everywhere in the country now while people are coming out in large numbers to cast their votes in five states where elections for legislative assemblies are going on under scorching sun. I believe some significant political changes to take place when results are slated to be announced in May. Stay safe in this summer, take necessary pre-cautions while dealing with the heat—like you do while investing in the capital markets.

Happy investing, Happy Reading.