The ideal situation for investment in stocks and shares as explained by Ramachander in "Dizzy rise" (Magazine, January 8) has never been in existence during the past one year. No sane theories of investment can be extended to the stock market where there is ample scope for a couple of influential brokers ruling the roost by their clever manipulation of the prices. They can make the market bullish or bearish depending upon the strategies they employ and that is precisely what is happening.
The government's financial policies and taxation laws are responsible for continuing rise in the share market, which is not in public interest. The share market is mostly manipulated by interested parties. Shares must be bought only for long term investments-to get a reasonable dividend each year. All tax concessions for shares must be withdrawn and heavy taxes levies on capital gains from shares business/trading. Only dividends from shares should be tax-free. Then there will be actual shares investments and trading and no speculation!
The rise and fall of the Sensex might raise the blood pressure of investors but for most Indians the "bull run" is hardly exciting. Instead of using the highs and lows of the stock market as a benchmark for the nation's growth, we should look at factors that showcase the lives of average Indians in a real way. Amid the euphoria of the Sensex, the rest of India continues to reel under inhuman conditions. Unless there are qualitative changes in the lives of average Indians, there is hardly any merit in such a "boom".
Arvind K. Pandey,
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