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Tough times - different actions

After a trip to the financial capital of India, Mumbai, I landed in the flashy city of Delhi.

Of many people that I met and talked to in Mumbai, the discussion hovered around the difficulty faced by people in stock market, economic issues, tough times, tightening the belt, lay offs (declared and not declared), sectoral impact etc etc. In a nutshell "get into the shell for safety".

Then I met Rajan S, a dear friend. I knew that he has lost a good more than 50% of his investments in stock market and was expecting a similar response that I witnessed in Mumbai. I was all set to ensure that I remain as balanced as possible.

"Hi, welcome to my newly decorated home" he exclaimed. "I went and bought two easy chairs, 5 decorative pieces, 5 pairs of trousers for myself along with 5 shirts, kids wardrobe has been replenished, wifey has bought some sarees and suits and not to talk of new curtains; all in the last fortnight" he went non stop "there are such great bargains available. In any case, no point in investing in stock market as I have burnt my fingers, hands and arms. I have decided to get all I wanted and at prices that are a steal".

No wonder Indians are seen as second most optimistic people in the world (reported in Indian media, Norwegians were claimed to be no 1 in optimism) under the current situation.

I am quite sure there are many Rajans' and they surely will ensure that Indian economy consumes more and more. Even if the growth comes down to the most pessimistic levels being talked about at this stage of about 6.5%, it will still be one of the best in the world.

Is the worst behind us? Will Indians behave differently? Not the 1% of population that invests in stocks but the rest 99%, a majority of which does not even recgnise terms like DJ, CAC, FTSE, Sensex, Nifty, HangSeng and so on.

India has had a good monsoon, paddy procurement is likely to be best ever, forex reserves are comfortable, growth is still a reality. Yes, euphoria is over but is the party over?

I just heard one investment manager (Nilesh Shah of ICICI Pru AMC) saying that Indian regulators have acted in the most positive manner and rather swiftly. Next two quarters will be tough but then there is likley to be a bright sunshine. All the companies that are not highly leveraged, can breath a sigh of relief.

Sentiments hold me from popping a bottle of Champagne but sparkling wine will do.....

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  1. fox18 November 2008 at 21:25

    Interesting comparison between Delhi and Bombay (sorry, Mumbai).

    ReplyDelete

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