The editorial “How real is the rally?” and C.P. Chandrasekhar’s article “A Sensex gone awry” (Nov. 4) capture the hidden realities of the stock market growth. The recent meteoric rise of the Sensex is mistaken for recovery and many sections of the media have glorified this nomadic behaviour of FII money. FIIs have found temporary shelter in the Indian stock market only to move out soon when conditions become favourable in a different geography. Both the pieces serve a good caution to investors to stay away from this tamasha which has nothing to do with economic recovery.
Sensex is not the real barometer for the development or health of a corporation as it takes into account various external factors. Sometimes, share prices are manipulated by big corporations and stock brokers for takeovers or infusion of funds.
G.M. Rama Rao,