Volatility due to huge chunk of weak operators: PN Vijay
Published on Wed, Dec 13, 2006 at 09:55 | Source : Moneycontrol.com
Updated at Wed, Dec 13, 2006 at 13:40
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Volatility due to huge chunk of weak operators: PN Vijay
Investment advisor PN Vijay believes that based on past track record of the market, such lunacy that the market has been witnessing subsides on the third day.
Investment advisor PN Vijay believes that based on past track record of the market, such lunacy that the market has been witnessing, generally subsides on the third day.
According to him, this has nothing to do with stocks and valuations but just leveraging in the market through margin trading, derviatives, stock futures etc. This will continue since a huge portion of the market consists of weak operators leveraging themselves through brokers, which is the issue.
He feels that if this 7% fall would have happened over the month, nobody would take notice of it. But since it happened in two days, it makes people wonder if the Indian stock market is stable.
According to him, this has nothing to do with stocks and valuations but just leveraging in the market through margin trading, derviatives, stock futures etc. This will continue since a huge portion of the market consists of weak operators leveraging themselves through brokers, which is the issue. 
