Riff speculation & Sensex breaches 12000 mark. Hurray!

ET carries a headline of "Reliance strikes oil in KG Basin" today. Thats not the formal announcement of the oil strike from the company. Just a speculation with a guarantee that within a month, company will announce it formally. God knows what this kind of speculation can cause in already volatile market.

 

I cant avoid getting nostalgic memories about "Not a penny more, not a penny less" novel at this moment. The villain in the novel floats an oil company, gives out insider information style speculation to the market that his new company has strike oil in sea. Four gullible investors invest their life savings in the company and the promoter of that company releases his shares to them. Later shuts down the corp too. Then the plot goes about how those four people cheat the villain to get back their money.

 

Today after this speculation, bearish market will bounce upon reliance petrochemicals and refineries shares like as jackpot. Lets keep a watch on the market for today, restrict to reliance industries shares alone. Last traded price is 920.85 in sensex .LTP on Nifty is 921.80. Lets see how it varies within a day.

 

ET says an Indian goverment official is the resource for them for this news. This is also a kind of speculation, may be good or may be bad. Lot of multinationals didnt show much interest earlier in oil exploration in KG Basin in India. This news will definitely increase the marketability of the KG basin oil exploration space.

 

Btw, I talked about my virtual investments in sensex shares in my earlier post. After that 11th april crash, sensex has recovered smartly in the bearish market. Sensex correction is still not around the corner. My virtual investments has got 2.7% growth for 9 days and its equated annual returns is approx 112% (woww..thats an impressive returns right). Now I can become a mutual fund manager ;)

 

Update note at 5PM IST: So here is the update on today's trading on reliance industries shares. This below graph tells you a lot of story. Reliance shares LTP at close of the day is 994. That means 10% growth within a day. All because -see the introduction lines of the blog. And one more good news, with this specualtion, sensex breached the 12000 mark with ease today. thats really wonderful now.

 

Courtesy: Charts from NSE

 

I am excited in writing this good business article. It happened within a day. I checked in to office today morning. While flipping through the ET, I found this catchy speculative article. My inner conscious told me that this is an important event. I was following sensex in the busy schedule of the day. And now at the end of the day, as expected the speculation brought in a big push for the sensex. Lets see who all else talk about this version of sensex crossing 12000 mark story.

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