Panic selling at UP exchange | india | Hindustan Times
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Panic selling at UP exchange

THE UNPRECEDENTED fall of the sensex on Monday hampered trading at the UP Stock Exchange (UPSE). The investors remained glued to computer screens to keep track of market developments. Many investors were seen making efforts to find an opportune period to sell off their shares.

india Updated: May 23, 2006 00:19 IST

THE UNPRECEDENTED fall  of the sensex on Monday hampered trading at the UP Stock Exchange (UPSE). The investors remained  glued to computer screens to keep track of market developments. Many investors were seen making efforts to find an opportune period to sell off their shares.

However, the  brokers could not convince  the investors to be patient and have confidence in the capital  market.

The investors insisted upon selling off shares at an opportune time without waiting for further strengthening of the market.

After the re-opening of the trade at BSE and NSE after  the suspension of  trading  for about  an hour, the small investors heaved a sigh of relief.

Purchases  made by banks and LIC not only improved the market conditions but also restored the faith of the small capital players in the market.

President of UPSE Brokers Association  Sushil Kanodia told HT that  the present situation had arisen because  of  introduction of future option trade. The fluctuations in the  market caused heavy losses to the brokers and the investors alike, he added.

He said that the government should promote INDONEX and  regional stock exchanges to protect the investors from losses.

On the other hand, a former director of UPSE  Vivek Saran  told HT that  such situations were a common phenomenon of the capital market, particularly in a developing country.  The small investors should wait and watch instead of rushing to sell out.

Patience could help the investors gain better results after some time. Decisions taken in a  hurry could not be  termed as wise, he said. The main reason behind the sensex bleed was the US economy  which dominated the Asian market, he said. Minor changes in the US market affected the Indian  capital market.

He said  since the government was serious about stabilizing the capital  market, the sensex would witness a new trend by Tuesday and the uncertainty about the capital market would soon be under control.