February 12, 2008
Almost after a year of hibernation, I had decided to re-enter the stock market. It had dawned upon me that I was missing out on the ‘fun’ and the ‘excitement’ that I used to get out of ‘trading’.
Just when I had decided to enter (re-enter) the market, I realised many things had become alien to me. Things had changed, the rupee-dollar equation was no longer the same, subsequently, the interests rates were not at the same level playing field with that of the other nations, an interest rate differential prevailed (is prevailing). And of course, the market seemed like on a northward journey which was beyond my understanding. Though not oblivious to these factors (I was of course, in touch with the news), I felt out of place. I was advised not to enter when the market was heading upwards with its head down (given my weird imagination, I could actually visualize a bull with its head down and horns right in place heading for a fight).
Anyways, decided against entering the market, lest I commit a blunder and burn my fingers. And my worst fears came true when the market came crashing down.
By this time, I had entered the market–at an observation level. The entire world and its servants were looking forward to the Reliance power IPO. Had promised myself, would research and then invest. With my detective lens in place, I found out issues about Rpower. The company had some legal issues, which, were dismissed by people that, its reliance after all, will manage things. Then I questioned, the company has not yet started its work, why is it then so outlandlishly priced? Oh, Anil Dhrirubhai Ambani!
All said and done, I decided against investing. After all, I should listen to my own logics.
The stock was listed, it pulled down the entire stock market! People saw their borrowed money sinking, their expectations crashing. The IPO that was supposed to make history, did make one! All those who were chasing the IPO, wonder, where they were on the day of the listing.
What is yet to be seen is how soon will Anil Ambani return to the market looking for money and how do we react.
Today, I am happily sitting over 17 shares with a face value of Rs 10, trading at Rs 350 something.. and Mr Ambani?, sitting pretty over the same amount at Rs 430/share. Well, after all, I had declared that the whole world cannot be after something that is useless! The bandwagon effect payed its role-perfectly must say.
Anyways, I have got my ‘fun’ and ‘excitement’ back!! I welcome myself ‘aboard’ once again……..Rest, as they say, is part of the game.