The Hindu : Kerala News : Kochi stock market rolling out investor dreams

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Friday, Feb 17, 2006

Kerala

Kerala

Kochi stock market rolling out investor dreams

R. Ramabhadran Pillai

Investors turn to bull ride in bourses

KOCHI: The investors in Kochi seem to have joined the bandwagon of those yearning to make optimum profit from the wealth at their disposal. Despite being the commercial capital of the State, the investment scenario here was not so bright due to various reasons. This situation has changed for the better and people are turning to investment options with an eye on maximum benefit.

The stock market and the bullion have attracted the upper class and the middle class segments. The buoyancy in the stock market has had its reflections in Kochi, according to experts. The trend is making headway and the future course looks brighter for the investing public as well as the trading groups.

The investor's interest has changed its focus from real estate to stocks, says Reji Jacob, Managing Director of JRG, an investment portfolio management company. Most of the NRI funds coming to Kerala accounted for investment in real estate earlier. But it is a different story now.

The mutual funds are giving good returns and the awareness has spread among the investing public. The liquidity factor is a major driving force that tempts the investor. The present daily turnover in the stock market in Kerala is Rs.1,000 crores. The turnover was less than Rs.500 crores a year ago, according to him. His company too is set to reap the good results from the bourses. It is planning to go for a public issue soon.

The steep rise in the bullion has had a negative fallout in the market, according to Mr. Jacob. The investment in gold has declined. At the same time, the gold futures trading has taken an upswing. The company has about 1,000 clients in Kerala, trading in gold. This is a remarkable change. The investment in gold futures has been a European trend, he observes.

The stock market is well regulated unlike in the past. There is very little scope for fraud. This has boosted the confidence of the public, says C.J. George, Managing Director of Geojit Financial Services.

The company had conducted 12 investor awareness programmes aimed at the ordinary investing public. All the classes had good attendance of 40 to 50 people, more than the expected capacity.

The participants were all investors. This is an indicator of the investment scenario, he notes. The linkage between the economic growth and the stock market has become too evident and the growth benefits are within one's reach to tap.

In contrast, the price determining factors in the gold market are of global nature, beyond India's control. A gold exchange trading fund is expected to be launched soon. That will spur interest in investing in gold. A real estate investment fund would also be launched and this could pool the investment in that sector in a methodical way, enabling diversification of portfolio.

Mr. George has spotted significant interest in investment among women. The trend is set to grow, according to him. His company had launched exclusive women's branches in Kochi and Mumbai. Both are doing well. Another branch is to be opened in Chennai soon.

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