Non Sensex

We have something called SENSEX in India, which is supposed to be the barometer of the health of Indian economy. It is a collective weighted average of the share price index of some top corporates that are listed in the Bombay Stock Exchange.

I have always felt that it should be called Non sensex, rather than sensex!

In my humble view, it is hundred percent gambling, profit-making and highly insensitive, jittery and short-sighted sentiment driven index. Nothing more. People try to fool you saying there is some science behind it and all that, but don't fall for it. It is pure nonsense.


Take the journey of the sensex during the last month or so. Opinion polls predict a hung parliament, sensex falls. Congress wins, sensex rises the next day. Economic survey predicts sweeping economic reforms, sensex zooms. Pranab presents a 'pro-poor' budget, sensex nose dives. Pranab assures the market that reforms are on, sensex recovers again. Poor monsoon predicted, sensex falls. Heavy downpoor in Mumbai, sensex rallies up. Rains continue for two more days, sensex in a pregnant pause. Mumbai flooded, sensex drops...


What sort of index is this of the economic health of the country? If daily trading is banned in BSE or at least, if their 'sentiments' are not taken into account, then probably I can consider this as an index. Even better, tell all the shareholders that anybody investing in a share cannot offload it for next 3 years, then it will really show what the shareholders feel and they will look at the industry and the particular company, estimate its growth prospects, rather than buying and selling based on the sneezes of the prime minister, moods of the finance minister, rumours of rains and droughts!

Till then, let us just call it non-sensex.