Big fish making a killing on the stock market

There are no clear answers for stock markets volatility. Market operators play buying and selling game that only big players understand, small ones follow trends and often get caught on wrong foot

Representative Image
Representative Image
user

Mala Jay

Somebody just made a killing on the stock market. Somebody else just went bankrupt. In the first two days of this week, this is what happened.
On Monday, Sensex and Nifty rose to record breaking heights. Tuesday witnessed a losing streak with Sensex tumbling by 184 points and Nifty slipping by 66 points.

It was the first working week after the re-election of the Modi government following the record election victory.

The soaring stocks on Monday were explained by experts as a predictable reflection of the buoyant mood of optimism.

But when the downturn took place the very next day, the very same experts gave entirely different reasons for the fall. Did the optimism turn into pessimism overnight?  No answers were forthcoming.

There are never any clear answers for the volatility on the stock markets. Market operators play the game of buying and selling in mysterious ways that only big players understand, small investors follow the trends blindly and often get caught on the wrong foot.


Financial newspaper confirmed that Monday’s trading was something special for the big fish with screaming and joyful headlines: “Investor wealth rises by ₹1.76 lakh crore as indices reach record highs”.

Note the figure. One lakh seventy six lakh crores was the gain. Whopping profits by any yardstick.

But within 24 hours, the headlines sang quite another tune. The words used to describe the fall were: tumble and slippage. The common explanation was: profit-taking. There was no mention of who made the huge profits and who suffered the crippling losses.

Many reasons were given for the surge on Monday. The BSE 30-share index zoomed 553 points to a lifetime peak of 40,267, said the experts, because of a) high expectations of a RBI rate cut on Thursday;  b) animal spirits unleashed by second term for Modi.

When Tuesday’s downturn occurred, the experts were quick to point to the causes:  a)  nervousness due to anticipation of RBI rate cut;  b) waiting for clear signals about new Modi government’s policy directions.

That seems to be the secret of market analysis – just say something, anything will do.  Even if it is the opposite of what was said yesterday, it doesn’t matter because the big fish have made their killing and are happily counting their money and the little players don’t really matter, do they?

Follow us on: Facebook, Twitter, Google News, Instagram 

Join our official telegram channel (@nationalherald) and stay updated with the latest headlines