Andhra Pradesh - Tirupati   

Stock market boom is for real: expert

Staff Reporter

`Risk control policy of the country among the best in the world'

B. Venkatachalam

TIRUPATI: Is the voracious boom witnessed by the stock market for real? Or does the metaphorical expression of a bubble, i.e., `one prick, all gone', hold good here..?

"This is real boom as the country is witnessing stable growth at the macro level and the companies are performing well at the micro level," explained B. Venkatachalam, Director, Bangalore Stock Exchange Ltd.

As a member of the SEBI panel on Risk Management, he said that the risk control policy of the country was among the best in the world. He was speaking at a national seminar on `Emerging trends in Indian capital market' organised by the SVU Department of Commerce here on Saturday, where he observed that the market was moving in the right direction.

Predicts high trading

Dr. Venkatachalam said that the full convertibility of the rupee would ensure free flow of money in an organised manner, thus benefiting venture capitalists and entrepreneurs a lot.

Predicting an aggressively high trading in terms of volume in the near future, he said that it could lead to a higher volatility, but indirect investments would see a considerable growth.

The stock market was gearing up for Straight Through Processing (STP) system, wherein the bank account would be debited and the share delivered in the shortest possible time.

"Discussions between the SEBI and Reserve Bank of India are on in this regard," he added.

Unlike other fields, academic knowledge would help only a little here, while `street-smart' analysis and practical comprehension of the fundamentals only would help succeed in this market, he told the students and advised them to take up research in this field as the pay packages of top financial services firms were on a par with IT companies.

Vice-Chancellor S. Jayarama Reddy asked the students to be abreast of the capital market developments. K. V. Ramanaiah, chief manager, SBI SVU campus branch and B. Mohan, principal, SVU College of Commerce, Management and Information Sciences gave an overview of the market dynamics.

C. Sivarama Reddy, head of Commerce Department and the seminar director D. Himachalam also spoke.

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