The Hindu Business Line : Market panic

Structural inefficiencies, apparent reversal of pro-business policies by the Centre, spiralling oil prices, global tightening of liquidity and scarcity of easy money are some of the factors that the recent crash can be attributed to.

What was informative in the article was that most of the transactions occurring in the major two exchanges are speculative/intra-day/derivative trades.

Short-term investors, as they call themselves, are in fact traders or speculators. This recent correction might act as an antidote to the day-trading epidemic.

Kuppusamy Chellamuthu

e-mail

Stock indices

The manufacturing and industrial indices have performed impressively considering their poor or negative growth in the last few years.

But the rise in indices has failed to rein in retail inflation, which consumers are facing.

Prices of many essential commodities have sky-rocketed, forcing consumers to search for alternatives.

The rising industrial index and the falling Sensex send conflicting signals; they also put a question mark against India's growth story.

The high fluctuations in the Indian stock indices are a precursor to the uncertain business and financial environment, which may play havoc with all our growth calculations.

Suhas S. Bohra

Mumbai

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