Stock Market - Nuts and Bolts

Stock market this week started on a very anxious note. There were too many news influencing the market. Ofcourse, the news that came out was thought of having a positive influence. This write up analyzes the pas weeks performance of the stock markets and a few learnings if any.

Crude oil price:This week the price was little over $130 which gave a great relief. This is in fact a great news for the stock market which was struggling to digest the figure of $140 a barrel. This is definitely a good news for the market. The market rose from 12K to 13K taking the price down from oil in the international markets.

UPA Govt. winning the confidence vote: The market has responded with a tremendous come back with a bang from the previous weeks low. The market rose by more than 820 points in a single day even before the confidence vote happened. There is also huge buying seen by the FIIs. This happened to be the driving factor for the markets on tuesday. Investors expected the same to continue for this week. But something else prevented that. The market rallied on tuesday even FIIs are the net sellers.

Bomb blasts in Bangalore: The recent bomb blasts in Bangalore came as a thunder for the markets which responded quickly on friday giving up all the gains in the previous days. The sensex lost almost 500 points in a half a day session as soon as the blasts news came out.

The market responsiveness in the recent time is so huge that no one is actually able to predict what can happen the succeeding sessions. There is actually no saying from the experts as to how the market will behave. Despite the crude oil price coming down, UPA govt being stable and promising to go ahead with reforms, there is no reason as to what is stopping the markets as of now. The only mantra that works even today is "Invest for Long Term".