Stock smart

Homemakers and students are taking advantage of the boom, reports Shveta Pathak

Many new investors are now putting their money in the market.

For 61-year old Sudesh Jalhan, a couple of months ago the stock market only signified a place that caused "unnecessary" excitement among over-enthusiastic people. None of the stories she heard about ‘fast money’ attracted her. It is this very market that is a source of income for her. Jalhan, a resident of Jalandhar, was keen on venturing into something that kept her busy after her husband’s death about eight months ago, and would at the same time take care of her income.

"I sought expert advice and two months ago decided to become a regular. I plan to continue trading. I am not hesitant any longer and feel that careful investment can generate an income good enough to manage a household," she says. Homemaker Shaveta Gupta, despite having done chartered accountancy (CA), never found the market attractive enough to take the risk.

"But this time," she says, "I did not want to miss it." Gupta, who shuttles between Chandigarh and Ludhiana, is a cautious investor who bases her investment decisions on expert advice and opts for frontline shares only.

"The boom", she feels, "has not only justified the faith of the small investor in the Indian share market, but also managed to increase the investor base. I was one of the reluctant investors who now find the market the best investment option."

For 24-year-old Vivek Jain, income was not the concern. But as he saw "everybody" around himself taking of nothing but the rising Sensex, he was unable to resist. "I always resisted the market The boom aroused my curiosity and I am a regular investor now," says the lawyer who hails from village Shankar in Jalandhar.

The last six months have recorded returns that have surpassed bank deposits, real estate and other options. Risk, feel most investors, can be taken care of if investment decisions are backed by expert advice and judgment. "New investors are entering the market like never before. On a single day we are opening as many as 50 accounts. There must be at least 40 depositories in Ludhiana alone and you can well imagine the quantum of interest this boom has generated. Such a phenomenon was never seen before," says Jaspal Singh, former president of Ludhiana Stock Exchange (LSE) Securities.

The unprecedented rise has new investors from varied fields entering the market. A majority of these include segments that were relatively dormant earlier — women, students and youngsters with new jobs. "The initial phase, even till the market was at the 14,000 mark, was full of hesitant investors. As the market continued its upward journey, doubts were raise regarding strength of economy, the fundamentals and whether this rise was sustainable. But now, even after touching 20,000 investors are quite hopeful that Sensex would continue the upward movement undeterred. We are quite surprised to see a lot of students putting their money in shares. The amount may be small, but this has led to total change in trend," opines Vishal Garg, a Ludhiana-based chartered accountant.

For small investors, the journey from 14,000 to 20,000 in the shortest span ever is not just an event they are witness to. It is something that has made many a part of it. "The proportion of students that has entered market this time is much higher than it ever was. They want the feel of the market and also have the confidence that they can put their financial knowledge to good use. For commerce and management students, the boom has led them to the markets and giving them an experience probably their seniors could not even think of gaining," says Jaidev Chaudhry, principal of ICFAI National College in Jalandhar, who has spent almost four decades in the field of commerce education.

Not just experts, small investors too feel the market has "undebatably" emerged the "best" investment option. "It was real estate earlier but now the returns that stock market is giving have surpassed all other investment options be it bank deposits, real estate or even gold, which is why trading volumes are at their peak," think Rajiv Nagpal, who works with IL and FS.

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