In the foggy climate enveloping Indian markets, a crying need for level headed analysis and clear cut solutions was felt by one and all..big and small.
Everyday, "Investors" across the country from Ludhiana to Lucknow,Ajmer to Aurangabad, Nagpur to Nagercoil,Siliguri to Silvassa,Rajkot to Ranchi were turning on their televisions at day break to tune into the "expert" view of the day (after yesterday's further "irrational" decline)..
As usual,the experts trotted out and intoned(in various regional accents):
- "weakness" may be expected.(global cues are "weak").
- "caution" was advised.
- "fundamentals" remained strong.
- "long-term" was the view du jour.
- partial "profit booking" was advised (but,but..we are all underwater!!)
- "buying opportunity for long term investors" (though this was getting shaky to "advise").
The relief of not taking definite loss today on the hope of recovery tomorrow was palpable.So onwards and downwards the days passed..
Then one "expert" decided enough was enough, he'd begun to dread turning up at office each day to face his and his merry employees' (spread over abt 600 offices across the country if the website be believed) band of investors who were increasingly losing sight of their multi-bagger gameplan and showing signs of deteriorating "sentiment".
The stalwart who saw a solution to end all this national misery,all this "correction" gone too far, was..R.Venkataraman Executive Director,co-promoter of India Infoline as the Economic times dutifully informed:
"It will take some time for the sentiment to change. There is a need for large institutions like LIC to start buying frontliners to provide a filip to sentiment."
"Also, there is a need to make policy changes by allowing pension funds in equity markets."
This just blew me away ! The genius in the solution was the simplicity.
It was incredible the whole investment community was suffering like this when the quick,short answer to this irrational decline was (gasp) just tell the government to buy!! All the govt needs to do is make all the PSU and maybe banks and maybe pension funds and maybe the Provident funds to show some support for the "frontliners".I suspect "frontliners" would include Reliance Pack,most Realty/Infrastructure stocks,Power stocks and maybe a few brokers could qualify too(the FII (suckers)partners were getting a little worried about their buy-in prices).
In fact,being election year,maybe some policy changes could be lobbied that in effect ensured that Indian stock markets can only go in one direction..up.Seriously,why wouldn't,why shouldn't institutions like LIC use their funds to participate in the amazing "growth story" we all believe in??..esp at this hour of need.
"We could still have been scaling new highs, getting higher valuations, opening more branches.."sighed R.Venkataraman. "Hell,my research team just extrapolated the corporate earnings for these "frontliners" into year 2015-16 and boss I'm telling you the P/E is microscopic!!".
I mean,you'd have thought Venky here was just another "expert" with a nicely shaped mustache and good "grasp" of stock market "investing",but just those 2 lines and the world knew he was head and shoulders above the average "expert" in fixing problems,esp stock market problems.
In fact rumor has it that US govt. has enquired if he could be loaned to them to fix a small "sentiment" problem there..though IndiaInfoline says "they do not comment on market rumours".
Last heard,the India Infoline advisory team,spearheaded by clearthinking R.Venkataraman (aided by the hard to beat mustache) has advised all retail clients in their far flung "branches" to immediately apply for agricultural loans to tide over this unplanned delay in the "filip" of sentiment.
This man is sheer genius..but then,their "Vision" statement says it all:
"Our vision is to be the most respected company in the financial services space."
..Venky has my respect and my space.