GalaTime

You’ve got to hand it to the market when it comes to fooling investors - the Sensex dropped from 10,350 to 10,200, leading many to believe that the budget’s impact on the markets was going to be negative, only to turn around and notch an all-time high of 10,420!

This is even more apparent if you look at intra-day trading in ITC. The stock dropped from 167.5 to 162.5, in conjuntion with “bad” news about tax increases on cigarettes, etc. But then, it turned around on heavy volume and zoomed to 176, a 52-week high!

PS: Also, check out the Securities Markets section of the 2005-2006 Economic Survey (full PDF via Business Standard); thanks to Ajay Shah for pointing this out.

PPS: On a somewhat unrelated note, here’s excerpts from an interview (download MP3)with John Bogle, founder of Vanguard funds. If only there was something comparable in India, mutual fund investors would be so much better off.

This entry was posted on Tuesday, February 28th, 2006 at 5:49 pm and is filed under sensex. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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