Stock em’ up!!

Yeah yeah, I now know what General Elections can do to the Market. Monday 18th May 2009 saw the Sensex jump by over 2100 points, and the Nifty by a staggering 650. Many of us think that this event of the Congress Party doing exceedingly well in the General Elections might bring in some ‘much needed’ stability and reforms. After all the unbridled enthusiasm shown by the Market participants might not quite be supoorted by the change sin fundamentals. It is the foreign funds that have been flowing in, which will mostly keep the markets buyoyant for some more time. Good for us.

Even though the Congress might not rope in any Market Freindly reforsm immediately, especially after showcasing the Rural Development programmes, and riding on it to a much needed victory in the #indiavotes09 , there are positive vibes goin on around us. Before the markets become mindful of subtelities of this environment, like the Disinvestment policy, or the Labour Laws and Capital account convertibilty ( phew!! big terms..i know)….the markets would strive if the Govt were to act upon the slowdown and control this financial rectitude. I only hope that the Govt can redefine its economic reforms in a very broader prospect and help us pass this darker times. ( too much analysis even before the Finance Minister is selected…yeah right!).

By the way, most of you must have made merry today ! The important question still remains….is this a good time to buy?

Mergers & Acquisitions

Literally speaking a Merger occurs when one firm assumes all the assets and all the liabilities of another. The acquiring firm retains its identity, while the acquired firm ceases to exist. A majority vote of shareholders is generally required to approve a merger. Whereas on the other hand an Acquisition is where in a company takes over another…One company can acquire another in several other ways, including purchasing some or all of the company’s assets or buying up its outstanding shares of stock.