I have a small info to share with you all, which is all about the sudden upswing in the current sensex index.This going to be more interesting for those who spend much of their time in share trading and those who dvelve in mutual funds. Kindly don't come to a judgement that I'm a busy online trader. Not so really,this blog is just a speck of the information provided by the vice-president of Sundaram BNP paribas in a gathering, compounded with my views.
Why the sensex boomed so high, where it is expected to dip atleast by small numbers? How Reliance made a fat profit than that of its high-profile competitors?. I can hear you say that it's because of the cash flowing into our markets from the foreign institution investors(FII)? But why they are pouring such a huge sum of money into the indian markets all of a sudden?. You can readily quit reading this blog if you are quite sure about all of that.
The major factor which determines the nation's currency value is its innate wealth. India is not blessed so much as that of US,UAE or Russia, where minerals,oil and energy is available in abundance correspondingly.India being a peninsula is a curse.Is that so?- "we can catch fishes and sell them in markets"-yes we can, but can we consider catching fish as an elite resource of income for a country. It is the valuable hydrocarbons embedded in the continental reefs which can turn up the country's economy. These continental reefs are not found in abundance and they were not believed to be available in the Indian waters until the Indian satellite launched in 1990 took photographs showing islands of energy resources in Indian waters.
Why the sensex does not rocketed at the time when satellites confirmed India's oil & gas resources?.It is because of our poor Indian policies which were dis-inclined to privatization.India was neglecting such a valuable resource because of the huge fund requirements for excavation, which is around 3000 crores for one km square area . Even the greatest oil-rich countries like the Arabs go for privatization when it comes to oil excavation and enjoy only the royalty out of it.As India loosened the tight for privatization by 2000 and later, many big shots jumped in to dig oil.The reliance stocks hit the roof when it struck oil for the first time.
India, being reluctant to privatization though,enjoys the economical boom whenever it opts for privatization- one big ramp up was during the acquirement of telephone services by BSNL.As the private sector has covered only a small area in Indian waters, we can definitely anticipate such a surge in energy sooner.
So what are all the industries that gets benefited out of this energy boom?.
1.Industries manufacturing oil rigs which are used to pump out oil. - Currently the only industry which manufacture oil rigs is in gujarat, whose production had to be increased by ten folds to meet the upcoming demands.
2.Industries manufacturing special alloy tubes to transport oil and gas - These tubes are made up of special alloy which can withstand the vibrations caused by the slippages of the tectonic plates and can be no way compared to the veeranam cement tubes, which made veeranam water for chennai a mirage.
3.Some of the other energy-dependent industries.
Hence, those mutual funds whose fund managers concentrate on energy sectors are most likely to be gained by the energy surge in the future.
