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Posted in Community :

Sultans of NSE

 
Started by : Gaurav Chhabra, Sr. Associate, HDFC Bank   12 01 2008 12:18:02 +0000
Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Activity:  66 views;  last activity : 07 06 2010 20:18:09 +0000

It would be glad if you all can share you thoughts on why all of a sudden share price declines??.

Why do you think that the share price decline unexpectedly ?? What might be the reason behind this ??

 
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1 2 3 4 5
1 Bulk selling by major shareholders
2 television channels
3 demand and supply mismatch at a particular time.
4 change in investment sentiment
5 political factor and news.
6 performance of company as on date and expected
7 action by stock exchanges and government
8 Analyst report

Bulk selling by major shareholders

idea posted by Gaurav Chhabra Sr. Associate, HDFC Bank
I think its all because of bulk selling by major shareholder which results in the share price decline.
Some major institutional shareholders may set a target that they will sell their stock at a given price. When the stock price reaches the set price, they sell all their stocks and the end result is that the supply of shares available increases and prices decreases.
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by taranath joshi, DGM Operations, EOL,  | 07 26 2009 05:49:05 +0000

The cartels would sell or buy shares in concert and prices fall or rise during this.

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by Shyne U, Project Architect  | 05 26 2009 09:34:40 +0000

Yes, bulk selling by major shareholders is the factor. Thinking alternatively, its a group of smarter people taking others 4 a ride by woo-ing them, showing the growth rate and then suddenly book profits.

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television channels

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

it depend what story telivision channels are beeming.how it effects the company.

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demand and supply mismatch at a particular time.

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

when you go out to sell and you do not find buyer and you have to sell anyway.what woul d you do discount sale.offers.

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by Sudeep Tarafdar, Senior Consultant, IBM  | 07 23 2009 09:47:17 +0000

Totally agree with Sandesh and his ideas here.......

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I agree with sandesh sir, demand supply mismatch, poor performance of the company,  government policy etc are the important factors.

 Stocks that are highly overvalued experience steep fall.

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change in investment sentiment

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

lot of investment depends on sentiment even today in the times of so much anlysis and knowledge and estimation.

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The market has its own inner understanding and market works on the pyschology of all the market participants. Based on the various factors and data, economic, business conditions, company profits, commodities cycle, interest enviornment ,etc  leads to a perception in value. Based on that valuation the concept of pricing gets worked out. And with immediate data a future appreciation or depriciation is factored in.

This future outlook leads to a cahnge in the investment sentiment. Long and short of it is that "Market operates in future time".

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political factor and news.

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

sometimes plays a very important role

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performance of company as on date and expected

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

lot of data crucnhing is doen on results and expectation of how the company,the sector and the economy woul dbe performing and huge order received and expected profit that would add to the companies bottom line.

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action by stock exchanges and government

idea posted by sandesh saboo Research Associate/Analyst, saboo associates

lot of actions of this two entities effect the prices in a huge way

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Analyst report

idea posted by Sukumar Maity Sr. Associate, IDBI Bank
I think another major reason for the decline in share price is the research report put forward by various analyst.

If the research report has some negatives about the company or if he say its better to sell the shares, it can affect the way the investors think. As a result the investor who are more short term oriented sells the share and price decreases...

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