Admist the high volume traded in the Indian Capital Market, there is a lack of vibrant retail participation. Lack of information and knowledge are the primary reasons for the same.Few
of my friends, who were pretty bullish on some metal industry
scrips, invested in them after an elaborate scrutiny of
the companies' historic performance and recent fundamentals.
They
kept on pumping their money into the stock market, adding
to the stakes, so much so, that they even withdrew some
of their old deposits that were enjoying fat deposit rates.
The subsequent quarter results were low and not in line
with the earlier quarterly results. They thought it was
just an aberration. But the next result was even more worse
and the tantalizing wait for the bounty never delivered.
Their
hopes started waning when their investments were shrinking
in the rising markets. Due to the cyclical nature of the
metal stocks and the depleting Chinese demand, the metal
stocks went into a slumber with no clear view of revival.
They
waited for sometime before offloading the loss. They never
had a chance to observe the routine operations, governance
and sales of the company in between the quarterly showings.
Even the seasoned investors, leave alone the retail investors,
seldom get the opportunity to monitor the progress of a
company on a day-to-day basis. For retail investors, it
is like groping in the darkness. |
