Anarchic Analogy

Yes! It's been a year. Now that is an achievement of some sorts! For a person who thought he wouldn't last for more than six months in this organisation, he has actually spent a year. And this year has been, to use a chiche, (Oh! I am so fond of cliches!), a 'steep learning curve'!

Yes, it has been a learning curve, albeit a bit different.

Working in a business channel, over the past 365 days I have come into contact with the stock markets almost every single day. Stock Markets are also known as Capital Markets which itself is an interesting name. Apart from the financial connotations of the word Capital, it also denotes a sense of being 'primary', and that states a lot about our stock markets. Yes, they have become the Primary mode of transaction in our country. And with the hullabaloo over the Sensex, this epithet is not unjustified. Every move the Sensex makes, is being followed by hundreds of devotees. So much so that it has spurned atleast 4 exclusive media channels, and this is not taking into account the hourly market updates on numerous general news channels, or the multitude of newspapers. It is this phenomenon that has caught my attention. Call it the Stock syndrome, or anything else ,this is the subject of my interest. This is my learning curve, or should I say a learning hole.

What is the basis of this obsession? Why does the rise and fall of a curve the reason of such emotional responses? Why do news channels go ballistic when the Sensex touches the 21,000 mark, and why do they go into a condolence mode when it crashes a thousand points?

Are there any answers? I doubt there are, but I can offer an explanation. Inspite of waht my learned colleagues might claim, 'trading' is no better than organised betting. Companies worth a crore have been valued at 40 times their asset by the Market. It is mere speculation that drives share prices northwards. And speculation is an integral part of our 'Capital Markets'. The channels with their numerous gurus make their living speculating.

Isn't speculation also a part of betting? How is quoting a target price for a particular stock different from betting on a number for huge returns? It is this inherent characteristic that drives investors crazy and the cause for such emotional outbursts?

And this is what spurns me.

Ever since its inception only 65 lakh 'investors' have ever made a transaction. That number might look big, but in comparison to our 100 crore plus population, it is a measly 0.065%! And we have four dedicated television channels catering to this minuscule number. If you don't find this ridiculous, then there is some cause for concern.

The impassioned response against Capital Gains tax and Commodities transaction tax is/was ludicrous. The CTT intends to propose a tax of Rs. 17 on transactions worth One lakh...Yes, One lakh! The arguments against the imposition state a decline in turnover, and a loss of trade!Is a person making transaction worth a lakh of rupees incapable of paying Rs.17 as tax?

The answer what our channels and their viewers would like to hear is- NO

And this has been my learning hole!

And into this hole I come everyday, praying that old adages come true, and there is indeed some light at the end of the tunnel.