Saturday, September 20, 2008

>Shorting ban???? not likely


Friends ,
We saw orchestral rises in stock markets world over in last few days.

Let me give my 2 gray bytes to this SHORTING saga.World over we saw massive onslaught by bears since a month or so with in between deep cuts ,We saw all major world indexes making new 2008 lows kind of cascading effect of American financial turmoil.
Did we see its effect on INDIA?

In my words to a lesser extent as compared to world markets.There every financial index was making newer lows every other day(They deserved it their banks were on weak foundation) ,But here back home in INDIA Banks were the one which were holding on and are near to there 2008 highs(Tried alot to figure out why they held strong one valid reason i think is they selling dollar what they bought near 39and presently near 46+).

So under such scenario asking for shorting ban is INDIA looks bit a wishful thinking. Overall with out BEARS Markets wont be good for trading :)Also the kind of fall BRICS countries faced recently INDIA is the only one which is least affected .Why UK ,Russia banned naked shorting there because it was going out of control.Also if any of you read an .pdf File from HSBC they tittled that article as
"INDIANS ARE THE LONE BULLS IN WORLD"
so asking about ban on shorting is not justified.

Regards
Rish

Do give your comments.

4 comments:

Tanuj Goyal said...

Hi

I thnk its nothing more than a damage control step(banning shorts) bcos massive shorting was taking its toll on banking counters; reducing their credit ratings & making short term credit unviable for them. In India, we dont have a problem of tht magnitude right nw- so yes u r right, we dont need a ban

Shiree said...

I doubt if any artificial manouvering can control the natural flow of Bull Bear interactions in market. I am not an economist or a Stock market pundit to forecast what will happen. But I do feel market will come up with its own solution to negate the fed action.

Market said...

Hi,

ban on short selling in global markets is just temporary. one can not save the sinking ship for many days but can definitely save for few hours. So Bulls need to understand this opportunity and should sail away from the sinking ship as thy have enough boats available with them to leave the ship. Staying longer on the sinking ship and betting on its long term life, when the captain himself has left the last hope, is foolishness and not courageous. PASS THE MESSAGE "SOS" and save all you can save. I hope message is very clear for even dumbs to understand.

Tango said...

Dear Rish i hope it should not happen. We need shorting for healthy Mkt. so i hope it dont happen. Good post mate. Tipssmarket

Http://tipssmarket.blogspot.com

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