EXPERT SPEAK: Investors, these days are guided by the political phenomena
Wed, Dec 17, 2014 12:00 AM on Experts Speak,
Santosh Mainali
Executive Chairman, Secured Securities Pvt. Ltd. (Broker No. 36)
ShareSansar, December 17:
More or less investors, these days are guided by the political phenomena. Positive or negative, any outcome in the political disputes will lead to market accordingly. We have noticed that investors were excited on Sunday trading on (14th December, 2014) as there was hope on political parties to come on common ground to form a timely constitution. Investors were optimistic and accordingly market increased by almost 40 points in one single day. But as soon as the disputes rose to the next level, investors got worried dragging market to downward. The market is trying to persist to this level (900 points) as it is established as psychological level as.
We can notice that there is some fact to analysis of the earlier movement of the market. Though issuance of loan in margin lending on the dematerialized shares is ceased in the recent days, daily transaction is seen to be doubled on first two trading days of this week. It signals there are still some investors who want to entry in the market as soon as the index head upward and carry on with the start of a bull trend.
However, there are some short term investors who are always in mood of profit taking in such sudden rise. Those investors’ selling gradually pressurizes the market. When the market was at the level of 850 levels, the thought of downward trend was established amongst the investors. Now it’s different but still there are short term investors who seem to be panicking whenever market slides a little.
We can assure that the market may not fall, like it did in the previous years. As there is an increase in the number of shareholders, minimum interest margin lending provided by the banks has also been dispersed in the market to give it a support. Earlier, there were limited investors and banks/finance used to levy high interest rate on them. So, whenever they used to get panic, it helped push the market in more downward trend. Dispersion in loan has changed in this scenario.
Nevertheless, I think there will be a negligible effect of ˊOff- Seasonˊ in the month of Poush and Magh in the market, but it is certain that it will take a bit of time to absorb the recently listed bonus shares in the market. Institutional investors, including mutual fund schemes are also injecting capital on a continuous basis, which is being fruitful for the market to rest above 900 index levels.
More or less investors, these days are guided by the political phenomena. Positive or negative, any outcome in the political disputes will lead to market accordingly. We have noticed that investors were excited on Sunday trading on (14th December, 2014) as there was hope on political parties to come on common ground to form a timely constitution. Investors were optimistic and accordingly market increased by almost 40 points in one single day. But as soon as the disputes rose to the next level, investors got worried dragging market to downward. The market is trying to persist to this level (900 points) as it is established as psychological level as.
We can notice that there is some fact to analysis of the earlier movement of the market. Though issuance of loan in margin lending on the dematerialized shares is ceased in the recent days, daily transaction is seen to be doubled on first two trading days of this week. It signals there are still some investors who want to entry in the market as soon as the index head upward and carry on with the start of a bull trend.
However, there are some short term investors who are always in mood of profit taking in such sudden rise. Those investors’ selling gradually pressurizes the market. When the market was at the level of 850 levels, the thought of downward trend was established amongst the investors. Now it’s different but still there are short term investors who seem to be panicking whenever market slides a little.
We can assure that the market may not fall, like it did in the previous years. As there is an increase in the number of shareholders, minimum interest margin lending provided by the banks has also been dispersed in the market to give it a support. Earlier, there were limited investors and banks/finance used to levy high interest rate on them. So, whenever they used to get panic, it helped push the market in more downward trend. Dispersion in loan has changed in this scenario.
Nevertheless, I think there will be a negligible effect of ˊOff- Seasonˊ in the month of Poush and Magh in the market, but it is certain that it will take a bit of time to absorb the recently listed bonus shares in the market. Institutional investors, including mutual fund schemes are also injecting capital on a continuous basis, which is being fruitful for the market to rest above 900 index levels.
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