Market Scenario

The Indian Stock Market is falling...............
So how is the common man in the street.
I was very curious to know this. Of course, I didnt go out to different areas and see how the crowd is etc... But I just happened to visit one particular Consumer item selling shops - The ever increasing Mobile Market Segment - The Mobile Phones Shops (or rather I was forced to go, because my daughter's mobile phone, an expensive one, which is just less than one year old went off because it was also drenched in rain and warranty doesnt cover the eventuality arising out of malfunction due to wetness, and so needed to find a replacement). Went to 2 retail shops to check out, each of which was just 300 sqft shops. Both of them were getting a steady stream of visitors and at least 95% of the visitors were leaving the stores with their purchases. In the second shop, where we ultimately purchased her new phone, the Manager ( a very young person of just say 24-25 years old) was telling his colleagues that the sales tempo has to pick up as all the other branches have already crossed 200,000 -300,000. The time was 2.30 pm on Sunday. so I am sure that at the end of the day even this tiny shop would have done a close to 400,000.
So where is the the dark Friday. is it that only those in the High income group who had the affordability to invest in Shares were affected and for the commoner it is business as usual?
I am still pondering this question. If you have any answers do let me.

Comments

Srinivasan Desikan said…
A very good observation. I feel the reaction to market slowdown is mixed. Over the weekend I also visited the shop for buying crackers and felt the market slowdown. What used to be a crowded wholesale market was left with very few buyers. The booming economy in India last few years created "Shopping Mall" habit and it takes time to change these habits. I do see many people in IT industry, lost their jobs and struggling to get back on track due to slowdown. While few "lucky non IT" and "fotunate IT" folks are trying to change their shopping habits, the impact is yet to be seen widely. Time will answer this question, I guess.
October 27, 2008 at 9:16:00 PM PDT
Umasree said…
Sarada akka,
coming straight to your questions, the Big debate on the CNN IBN confirms that only around 2-3% of people actually invest in stock markets in India. So the direct impact is on the investors and the indirect impact is on all of us who have been dealing with banks and consumer products. This scenario is especially hit when the market segment is behind an FI income and depending on the export revenue. Otherwise, the Indian Manufacturing and marketing segments are still going on as is, irrepective of the global markets. Moreover, your sampling of mobile phone, today has become more of a necessity than an decade old luxury to stop people from buying it. So there lies the answer!
October 28, 2008 at 10:27:00 AM PDT
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