Several Founders, Co-Founders, CXO Bankers, CXO Fintech professionals & people who participated in the ePanel discussions:
- Mr. Avro Mukerji, Investment Counselor- NRI Affluent Banking
- Mr. Kamonasish Aayush Mazumdar, Founder & CEO at Foodieverse
- Mr. Alok Karkera, Group Head – Government Coverage Group-West & South at Axis Bank
- Mr. Sukhdeep Singh, Former Vice President- Banking And Business Development, Oxigen Services (India) Pvt Ltd
- Mr. Yogesh Gupta, Former Head Online Remittances- Money2India International Banking Group, ICICI Bank
- Mr. Rakesh Shetty, Product Head Micro Loans, Fortune Credit Capital Ltd
- Mr. Alok Dhawal, Assistant Vice President, SBI Capital Markets
- Mr. Rakesh Watal, Head Liability Operations Western Region, HDFC Bank
- Mr. Rahul Dayal, Head- Information Technology, Aditya Birla Sun Life Mutual Fund
- Mr. Anand V, SVP & National Manager – Cross-Border Payments & NRI Banking Products at Kotak Mahindra Bank
- Mr. Roopesh Chandran, Director – Fintech, Processors and Business Excellence at Visa
- Mr. Abhishek Mody, Vice President, M2P Fintech
- Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous
This pandemic has changed our lives like never before. Many businesses are not even at their 20% level, people are losing employment, several industries are disrupted. Well then, How can Sensex touch its latest lifetime high? Is this going to be a repeat of what happened during Harshad Mehta times?
- Sensex can touch a lifetime high because, in today’s time, the stock market does not move in the direction of the present fundamentals, rather it tries to move in the direction of projected earnings of the corporates and Q-o-Q, Y-o-Y growth. Since the corporate results coming out now will be in comparison to the same time performance last year, the results will largely show growth for the Bluechip companies (30 of the largest by market capitalization constitutes the Sensex). Add to that the availability of excess liquidity, helps the market to grow and reach lifetime highs.
- At best it can rhyme but not repeat, things are expected to improve from here, and therefore, chances seem really slim to witness a repeat of Harshad Mehta times.
- Member says, “Harshad Mehta scam was termed so after the huge correction in the market. Till that time everything was legal, or so I think. Liquidity/excess/pump-priming by governments is legal today. Tomorrow is yet to dawn. Till the correction everything is legal. So flow with the tide. Pray not to be caught in the tide reversal.”
Does this seem to be a bubble?
- RBI has also warned that Sensex being an all-time high may be a bubble.
- Member mentions, Investors (not speculators) buy stocks due to two main reasons (a) If economy, sector, and company show promising future and current growth — currently, I do not see growth in the economy (V or W shape recovery is debatable), except healthcare major sectors have negative growth. Leave apart exceptions who have shown a nominal growth. The second is if they see Sensex/Nifty growing. There I feel is a trap by whales. Bulls create a speculative environment instigating investors to invest. Take it to the top. See their holdings and bring down the market. Its general investors’ loss (buying at artificial high prices) and speculators gain (selling at an all-time high).
- In the case of Harshad Mehta, he misused the funds which never belonged to him to create such scenarios using bank receipts and manual fund transfer processes.
- The current situation seems to be a bubble where few are driving the markets. FIIs taking out funds from the secondary market and still stocks/ Sensex rising is out of logical or fundamental thinking.
- On the contrary, a member opined, with governance increasing every year no large scam like Harshad Mehta can now happen, so it’s not a bubble. But these are markets so any new major negative event can shake 20% off within weeks.
Digging down a bit further; Register and Read the complete discussions