Skip to main content

How reality loses to momentum?

Truth prevails is an old adage that seems to be losing its relevance in the current sentiments.

Still I am confident that "Truth shall prevail". Hopefully, sooner than later.

The case in point is the investor confidence in the stock market. Indian markets are aping the performance of the stock markets of developed world. In fact, the possible loss in indices is reasonably predictable in the last few weeks based on what happened on the previous day in Europe and US.

Are the situations similar? Are Indian businesses facing the same situation as companies in western world? Are Indian corporate giants going bust like crackers in Diwali? Have companies of great repute and history in India have filed for bankruptcy? Has any company in India reported loss of sales (top line) in double digits and evaporation of profits?

Slowdown yes.

How bad is India? Is it comparable to West?

It has baffled me as to how convenient has it been to be infected with "western sentiments" virus without realising that there is a natural immunity we "have".

To the left brain dominated ones-

Indian commercial vehicles sales are in dumps. Tata Motors and Ashok Leyland have reduced production, shut factories for a few days and stocks are beaten beyond imagination.

How does it compare to some global players?

Volvo AS is second largest manufacturer of heavy trucks. They produced nearly 42,000 trucks in Q3 of 2007.

Q4 2008 production

guess

guess

keep guessing

and the last guess


155


Now assess how bad is India and why should we link Indian mindset to a western one in sentiments.....

Labels

Labels:

Comments

  1. Alakto21 November 2008 at 15:07

    Market possibly considers future earnig potential and not really the past incidents which in any case have been discunted.
    India, where service plays a dominant role in GDP and within service sector IT & ITes are quite apprehensive of a severe slow down, where the forex reserve is depleting with FII outflow coupled with wider trade deficit on a continuous basis,where consumers are ruthlessly cutting down avoidable expenses taking a cue from their employers putting the overall economy into a downward spiral,is only validating the fact it's no more de-coupled with global economy.

    ReplyDelete
  2. DineshJain21 November 2008 at 15:54

    You are correct Alakto. The only point of difference is the intensity of actions and the extent of impact on future is different in India so coupling with rest of world is not on a 1:1 scale.

    ReplyDelete
  3. Babu Bhaskaran26 November 2008 at 14:21

    Indian companies are smart enough to understand the constraints of a slowing economy. In our group, as in others too, strict and stringent measures are being put in place to safeguard at least the bottom lines. The markets just over react.

    One also has to consider that the levels that the market reached were unrealistic. For a casual observer like me, it was not sustainable. I say this because the basics remained same or moderately improved but the valuations went up exponentially.

    ReplyDelete

Post a Comment

Popular posts from this blog

Is West leading the East? Ignorance can be a bliss!

There is a side effect of every medicine just as there are always pros and cons for every decision. Coupled with this, excess of anything is harmful. India has perhaps one of the largest numbers who can read/understand English. English is very closely associated with the "Developed World". Hence, our English media is greatly influenced by the "Developed World". It actually goes further from media to individuals. The more "cerebral and globally connected" individuals are all a ball of gloom. R written large on their faces and expressions. There are enough reasons given, even for India. - Current slowdown - Approaching elections - Job slashes - Next monsoons To me it is a clear sign of clouded mind. It is so visible in the English newspapers vs local language papers. Headlines in English media all talks about - losses, layoffs, slowing demand, US companies going down under etc. Language papers talk of recent elections and promises, banks slashing interest ra...
Post a Comment
Read more

Power of observation

Mr Topiwala observed his niece being very interested in dressing up. He engaged in a discussion and came to understand a pain point of large number of Indian women. Something that women are very passionate, possessive about and have a very strong emotional bond, almost unbreakable bond. He created a new product that solved a huge effort and a recurring problem. And this was a self sticking, in varying sizes and design and in colours preferred by women, red and maroon. Since its launch in 1985, the brand is a huge dominant one in the market. Almost synonymous with the category. Companies would envy such a dominance. Over the years many innovations were brought about like iodine enriched, dermatologically tested and many more. 'Shilpa' bindis. An amazing story of a dominant brand that solves a real problem through acute observation. Would love to know of more such stories. #bindingmachine   #observation   #consumerneed   #businessmaze   #indianmaze 204-1-20
Post a Comment
Read more

Mumbai Attack - citizens need to change

Worst ever attack on Indian soil. Touching the soul of ordinary citizens. With bomb blasts, train blasts and now this attack I think not a single family is untouched by the tragedy for there is someone known who has suffered at the hand of terrorists in these cases. Panic is hitting the streets. One of the junior of a friend lost life today, two cops known to a close friend lost their lives. A freind's wife was in complete hysteria last night when she heard Taj attack and her husband being in Taj for a function. She could not even hear when he called to say that he was in Taj Land's End in Bandra and not in Colaba. She kept on yelling "come back, come back". There has been non stop coverage in all TV channels across the country. What was happening at one of the leading newspaper in the capital whose editor decided that this news is good for a byline and anchor story has to be on Delhi elections? Citizens - both directly and through media should start pushing the syste...
Post a Comment
Read more