As a finance professional, it gives some satisfaction when your prediction about the market comes true, but as the markets have tumbled and my own value of investments come down, I am not happy.

After I wrote the piece that By start of Next Fiscal you expect Sensex to Cross 10500 mark, the markets for once rose and crossed 15000 mark, again to fall below 11000 mark, albeit momentarily.

The recent cry off in the stock market has eroded the expectations of millions of investors and the aftershocks and tremors are still reflected by the market. The investors are anxious to put their hands in fire, after they felt the heat of rising temperature in their investments.

Let me tell you story about a working individual- and you guess about him as to who he is. He usually watches TV business Channel as CNBC, Profit at night, reads yellow news paper in the morning and subscribes to stock alerts.

Reliance Power issue was oversubscribed two times in just 60 seconds. The company is yet to commence production, while IPO of Emmar, a company with great track record of development in India and abroad and already in business had to earlier to reduce premium and then to withdraw the issue.

With budget ahead, markets are expected to be volatile. Every statement that comes from south block would have effect of either dampening the markets or lifting it to new highs. Especially, this year, when expectations from budget are quite high, budget has to be exceptionally market friendly to keep markets spirits high.

January 18th, 2008: After sensex crossing 21000 mark, the stock indices are continually registered new low levels which has nearly triggered off panic selling. What is the right course of action today for those who have positions and for those who are willing to enter at the right time?

After few delays, reliance power finally filed its red-herring prospectus with the Registrar of Companies, Maharshtra, for its forthcoming equity issue. Reliance has fixed the price band at 405 to 450 per share and retail investors would be offered discount of Rs 20 per share. The IPO is scheduled to open on January 15, 2008 and will close on January 18, 2008.

The recent boom in strong markets appears to have convincingly won the confidence of retail investors. Capital inflows and diversion of savings from fixed deposits by retail investors would provide strong impetus to the share market. In any case, real estate has become too expensive for most investors to shift to.

The markets are at historic high. So is the volatility. About two years back, when the markets registered about 1200 point fall in a week, the headline in a reputed financial daily was, “Is any body in Delhi listening?” Today, even when the markets register fall of 2000 points in a week, it appears normal. The back drop is, we all are convinced on few issues as the markets are over priced, the markets are substantially in the hands of FIIs, and on the optimism side, we are headed for a big boom.