Ranjeet Walunj

August 12, 2008

Disappointing June IIP at 5.4% …Stock market ends weak

I was talking to wise friend of mine from finance sector and he told me why the market went down today.

It all started first with CNBC reporting IIP (Index of Industrial Production) at some 3.4% and the market entered the panic mode and lots of Nifty lots were sold in that period.

That was an error on CNBC part as incorrectly reporting “Growth in six key infra industries (which is 3.4%)” data as IIP numbers.

Whereas the actual number was released later which was at 5.4%.

However the damage was already done.

Although the numbers are not good but it is not as bad as 3.4%.

CNBC must have corrected that immediately but traders following CNBC, shorted many lots to create more panic.
All these things happen when you try to push news faster than your competitors.

I like CNBC for its fundamental analysis of the conditions/companies. However I do not follow their recommendations. It always pays to do your own research and then invest.

Long term investors in my opinion should not worry as it does not make much difference when you are looking at the horizon of +5 years.

Traders do like volatility in market and they will be more than happy to ride the waves.

I’m short on money otherwise I would go ahead and invest in good solid scrips. (for long term)

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1 Comment »

  1. Disappointing June IIP at 5.4% …Stock market ends weak…

    I was talking to wise friend of mine from finance sector and he told me why the market went down today. It all started first with CNBC reporting IIP (Index of Industrial Production) at some 3.4% and the market entered the panic mode and ……

    Trackback by Conspirama — August 12, 2008 @ 9:30 pm


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