Yes indeed a latest artical in Daily Express here in london....the "BRIC" were being criticised (May be just because the FTSE dsnt yield that much they are jealous about India) I agree to the fact that the system has a faulty Base. the reason however can be Corruption and Potholes which the government ignores in finding the culprits... the best example is Raju.... in a book on corporate finance the author there said that MacD in US stock exchange was alleged to creative accounting and enjoyed high share price for a longer time however when it was disclosed that its just mere creative accounting the share prices suffered. which means even techniques like Creative Accounting can cause pressure to a good health Base of a stock market. but in a nut shell yes we do have a faulty base.
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Urvish Pankajkumar Subodh, Guest Lecturer (Economics), H.L.College of Commerce- H.L. Institute of Commerce.
| 08 30 2010 17:23:58 +0000
Mr. Vipin, the indian market are mostly manipulated. I agree with the comments of Jyoti Rath below. If satyam counts below at Rs. 10/- with more then a decade upside average of 100`s or 000`s. The majority portion of Indian stocks are manipulated.
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Jyoti CHETANI, Freelancer, Equity Research/Analytics
| 06 23 2010 17:02:40 +0000
It has to be manipulative. The trade in the Stock Market is based on perception, market reports, and prospects. Like every individual in any market is keen to making money and as much as possible, so also the people who trade in the stock market. Those who can infulence the price, would want volatality in the stock prices so that every time they hit to buy, they can buy cheap, and whenever they intend to sell, they can sell high, thus making a good profit. It does not mean that the financial datas of a company or industry has no relevance, it does, but follow the discouting ratio, it is different for different companies, and sometimes can be stuningly disproportionate. Pushing down and pushing up the stock prices is undoubtedly an important activity for those who are trading in stock, and they would continue to do.
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T S Jyothiram, CFO, Pacetel Communications
| 06 23 2010 11:21:27 +0000
I think yes, and most stock analysts and media-people refer to as a free fall in the stock prices, can also be referred to as manipulation on the part of a consortium comprising of major stock brokers, operators, FII’s and other institutional investors. In the past how many times have we seen like, when the markets reopened for trading after an on account of the indices hitting the lower circuit, most of the brokers terminals were frozen for buying.
What this meant was that investors who had funds were unable to buy shares at the lower levels. However, these same investors were allowed to sell, thus indicating that while the smaller investors were being allowed to sell off their stocks at lower prices, they were prevented from making taking advantage of the low prices. However, the stock prices began to rise from the day’s lows, thus indicating that ‘someone’ was definitely buying stocks at lower prices.
How come this discriminatory treatment towards the small investors? Why is he allowed to sell his stocks at lower prices, but not allowed to join the party by buying at lower levels. This clearly reflects that the markets were being manipulated by the cartels comprising of brokers, operators.
By
Jyoti Rath, Sr. Associate, Barclays
| 06 23 2010 07:51:48 +0000
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In short term it seems that people can manipulate the market , due to better availability of information ( sometime insider information ) , or say faster action due to information reaching them earlier , or due to collaborative practices . But in longer term market is so complex , information flow is too complex and information reaches earlier than what it was few year ago , i think its simply not possible to manipulate market for long. And in most of the cases even manipulator have to bite the dust , all the CDS default and bail out is because of this manipulation practice . So its true short term its easy to manipulate to some extent but in longer term its simply not possible or would say its impossible to manipulate the market . so if you are i n equity market for long - say 5-10 year , forget what FII says and what their view is ......
By
prabhat mishra, Domestic Private Banking-Executive/Manager, PVT BANK
| 06 23 2010 10:54:42 +0000
It depend on whether one can manipulste the index based on the method of indexing. Now it is a regression equation with weights assigned based on volume and value of trade. A better proposition to calibrate the index is to assign 1/2 a point for each buy and -1/2 a point for each sell, I mean for each 100 lot sale. So the index will reflect the deficit or surplus. The problem with regression indexing is, a large networth indivdual or cartel investors can manipulate. One can keep buying at lower end, creating value and volume and when it peaks they can sell their initial holding. In the latter type indexing when one buys the sellers offset the price movements, so cannot get manipulated.
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Mathew Cherian, Research Associate/Analyst, Western Michigan University
| 06 23 2010 09:09:00 +0000
I am not an expert in dealing with Stock marketing, But I dont think that it is manipulative. Ofcourse there is fluctuations because of so many reasons. So many indians world wide are there who are only doing Indian stock buisiness. I personnally knows who are making profits. I can say an example, so many of my friends advised me to invest in reliance share during recession. But I was not interested in it. But now I am thinking that it could had been a good decision when I am seeing the difference in share value within this almost 2 years. Thanks Vipin for this meaningful debate
By
Manoj Kumar, Sr: Manager - QA, ARCHETYPE GROUP, INDIA
| 06 22 2010 15:13:01 +0000
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