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Wednesday, September 30, 2009
Silver lining beyond the black cloud?
Publication: DNA, Edition: Pune, Journalist: Bureau, Page No: 4, Location: Top, Width(cms): 33, Height(cms): 34
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Recession has taught people to save & spend on essential items
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There has been an upward rise in the spending power of people as com­pared to the last year. But it has not yet come back to a normal or a lavish level. People have learnt to save with the reces­sion. They are spending on things that will give them joy and not burn a hole in their pockets.
The rise in the Sensex does not affect everyone directly but it does influence their purchasing power. When the Sensex goes up, people are happy even if it does not benefit them.This is a good time for online busi­nesses because customers are logging on to the websites and purchasing online. This month's statistics show an increase in online shopping.
—Hussain Haideri,
CEO SHOPPINGLANES.COM
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Indian market is soon going to see some good days
I ndia is the world's largest consumer of gold, valued as an investment and sav­ing in the form of jewellery. The gold mar­ket in India is inter-connected with the London market, which is the biggest clear­ing house.
With the recognition from the Govern­ment of India, the Multi Commodity Ex­change (MCX) of India in Mumbai facili­tates the gold market in online trading and other opera­tions across the nation. The gold price in the market has reached an all-time high due to the MCX exchange set-up. Remove the MCX body and the gold price will come down to Rs ll.000.
In India, Gudi Padwa, Dassera, Diwali and Akshaya Tri-tiya are four auspicious festivals when people buy gold, which we as retailers look forward. If you look at the histo­ry of gold in India, the price of gold has never come down drastically. The share market operates on a national level while the gold market operates on an international level. Indian market is soon going to see some good days.
Fatehchand Ranka, owner, ranka jewellers
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Indians believe in a product's value & have high saving sense
S ensex is not on a bull run at the moment but it does play a big role in changing the mindset of people. A rise is the Sensex may not be beneficial for everyone. But when it does rise, people rejoice.
Indians show their buying profipiency only when they get a good deal. When I wanted to buy shoes, I went to a mall which was offering a 30% to 50% discount. When I tried to enter the mall, I found it packed. This fact proves that Indians believe in the value of a product and have high saving sense. When one finds a valuable product, one goes and buys it without bothering about one's financial capaci­ty If it fits one's budget and is a good deal one ends up buy­ing it. This tendency is seen in all Indians.
These days, many shops are offering discounts and people are buying a lot. If the offer is good, people buy but if the sale is bogus, where you just say there is a discount and don't offer any, then people are smart enough not to buy. The same applies in business. If you give a value deal to people, then they buy Sensex affects buying only if there is a mass participation of people and the sales double. It is because the spending power of people increases.
N Chandramouli, ceo, bluelotus communications
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The education sector is on the threshold of a big boom
T he education sector was not much af­fected by the recent economic slow­down as compared to the other sectors.
As we are into vocational courses, our students are from the IT and engineering sectors. They were going through reces­sion so there was a slight drop in the en­rolment. With the Sensex showing signs of recovery and the festivities around the corner, people have started buying and the cash flow in the market has increased.
When we entered the market during the onset of the re­cession, we had a tough time keeping ourselves steady. The market slowdown is still there but it is on the path of recovery The education sector is on the threshold of a big boom in the near future.
Kedar Nigavekar, md, seamedu
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Sensex has nothing to do with people's purchasing power
People are still not investing in mutual funds or stocks
The rise in the share market is an indication of recovery
P eople are purchasing more this year com­pared to the last year. My diamond busi­ness is doing almost 30% better than the last year. There are many people who are buying more diamonds and diamond jewellery I do not think that the Sensex has anything to do with people's buying power. If people have less mon­ey, they will buy less. If they have more mon­ey, they will invest more in gold or diamonds. The amount of money decides one's ability to buy and Sensex has nothing to do with it. People buy during the festive season. If you have money nothing can stop you from buying. Many people are out this year to buy, the scene is much better than last year.
—Kaushik Jain, director unigem fine jewellery.
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P eople are confused about where to invest their money. This sea­son, there is no slowdown in the mar­ket. But I observe that people are hap­py putting their money in fixed de­posits or buying gold. They are still not investing in mutual funds or stocks. There are not many retail in­vestors in the market. But the fact that the market is rising means that larg­er investors are playing big. We cannot expect the re­tail investor to invest in shares as he is still confused. —Janak Shah, investment consultant
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I manufacture steel tubes for various com­panies including those in the automotive sector. Capital expenditure of manufactur­ing companies has increased. The overall steel consumption and the prices of steel have gone up.
Things are getting back to normal not be­cause of the festival season but the situation has been improving for the past four months. The automotive sector has picked up with increase in sales of vehicles especially the two-wheelers and the four-wheelers. We are on a positive and sustainable recovery path with a firm footing. The increase in the share market trade is also an indication of recovery towards a bright future.
Neeraj Shah, entrepreneur
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