Shadow

Steep and continuous rise in Sensex

It refers to continuous steep rise in Sensex already touched record-high of about 39000 and not yet over, started from just 100 in the year 1979. An investment of rupees one lakh in the year 1979 if made and regulated carefully and wisely could have resulted in rupees 3.9 crores now on 40th anniversary of Sensex in India.

While at one hand, such rise in Sensex is a positive index of industrial growth, but on the other hand there is always fear of bursting of such blown-up balloon of Sensex like happened in case of property. While investors in property for multiplying investments were affording rich, investment in shares is done by even ordinary middle-class people who may not be able to bear any possible steep fall in Sensex.

Such regular steep rise of Sensex indicates extra-ordinary huge profit-margins of companies. Time has come to fix some maximum total trade-margin for all trade-channels between manufacturing cost and Maximum-Retail-Price MRP, making cost-audit of products compulsory. Such a system will remove fear of bursting Sensex-balloon apart from downfall of prices of commodities.

 

SUBHASH CHANDRA AGRAWAL

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