Is SENSEX heading towards 11000?

SENSEX crashes 600 points. SENSEX is down 2% last week and even today it crashed. So do we heading to 11000? Answer for this may be YES. but why when Investors in the world are still bullish on India. Economist says India is shining. So why we think SENSEX is going down? Their are many reasons for this.

One of them is Global crisis. US economy is really in a slump. With US, European economies are not doing well. In India, Maximum investment is coming from US. When US is doing well they need money to keep them up their. just 6 months back US investors have invested $20 billion in Indian market. As we see US economy is open so money rotation is very high. If a small investor looses money it affects all who comes in his contact. so if one investor makes loss in US market he needs to recover his money from some other market and Indian market is the market which has shown fantastic movement and he will recover his money from Indian market and he sell millions of shares. Which creates panic in small investors in India and they will start selling their Shares and which affects Market badly.

The other reason for SENSEX loss is Global Crude prices. As this prices are surging up Inflation rises which results in high CRR and High repo rates which increases loan rates in the market which reduces profitability for companies. Which creates pressure in the market. Prices of this company shares are going down and investors start selling which brings SENSEX down.

Other reason for this SENSEX going down is very strange and when we think its obvious. When crude prices are surging up People start investing in Commodities such as crude. To invest in crude the investment require is 6Lakhs for 100 bbl. If we take 5% profit on this it will make 30000. And in these condition profit of 30000 is good. So investors start investing in crude and selling Equities. Which results in negative trend as far as the SENSEX is concern.

So it means SENSEX will surge further and it will reach 11000? Answer is NO. Reason is that, India is still shining. If we check last year foreign investment has gone up by $4 billion. Investors are bullish on Indian Economy. As fundamentals of Companies in India are very good. Majority of the companies are making profit in such crisis conditions. and this very good sign for the economy. Yes their profitability got low but still they are doing good then their counterparts in other part of the world. RBI and government is still saying that we will achieve 8% growth so this means it is a very good sign for the Economy and SENSEX.

Are we heading towards 1929 Global Crisis?

Morning 7.00 Manan Wake up and walk towards the main door to take News Paper. This is his daily routine. He take brush, while cleaning his teeth he reads paper. Today he feels like not to clean his teeth because of the news he read. News were,

Unemployment in US increased drastically to 10 years high.
Inflation in the world increases. In India it touches 13 year high to 11%.
Oil Prices are surging high to set a new record to $140/bbl.

This was a story of one person who belongs to Middle class and know what this means. Now a days we usually read this stories daily in news papers. News papers compare this crisis those with the 1929 global crisis. Do we are heading towards it? or this are worst then those? Do we able to come out of it? The answers are NO and Yes. No as we are not heading towards 1929 crisis. Yes as we will be able to come out of it.How we can say this crisis are not worst then 1929? The reason for this is that,
After World War - I almost every country in the world were in debt except US as they had not taken active roll in WW-I. After WW-I US was the only strong economy in the world. So when US economy went downwards there were no other country in the world who can support US to come out of it. Many countries in the world were dependent on US for supplies. and because of this reason crisis got worst.
But today the scenario is different. Still today US is Super Power but there are many Developing economies such as China, India, Brazil. Few years back their was only US who was teaching the world how to survive but today the countries like are teaching others how to survive in such critical countries. Few days back a meeting was held between 4 Noble prize winner Economist and every body has appreciated developing countries like India for their role in curbing this Inflation. Today US is not alone to fight with this crisis but their are many countries who are able to fight with Inflation.

If we want to survive from this crisis, we need more super power countries who can help other countries to progress. To achieve this developing countries like India, China, Brazil have to come strong and need to break US power. with this they are helping US to run world economy with out such crisis as in US this is 4th time they are facing crisis in 20 years which makes world economy less effective. To achieve high growth rate developing countries should work hard.

How to package solution for each market?

Packaging is very important aspect of any Solution or Product. Packaging makes product look better. But often we think if Packaging is so important then we should always make it perfect? and it is worth to invest more amount of money on packaging? Here the question comes How to package Solution or Product for each market?

When ever you are packaging your solution you should always look for the market environment. This is the most important step for packaging your product and to understand how we can manage our cost for Packaging.
In other words if you know what is people's mentality in the market or their spending style you can package your solution in a different way as effective as it can be.

Take example of Sauce bottle. for packaging of a Sauce we require a bottle and a bottle nob. Here how we can manage our money in packaging this. Lets say when we sell Sauce bottle to a customer we can find out what is his usage. Say he is purchasing bottle for Hotel than we can say Threading on bottle and its nob is not required. Threading does not take much of glass or plastic but what ever we can save we should do it. But in all conditions it is not useful. For this we should check what are the Market conditions. What is people's mentality on spending.

If you take US as a market, people mentality here is that they usually don't care for packaging. They usually check the Solution or a Product they are buying is solving their purpose or not. And in US people usually purchase with plastic money so they don't care much about the pricing, and its external packaging. But at the same moment you take whole Europe as a Market you see a complete opposite mentality on spending their money. Here people always look for value. Value is not the price but its use, appearance are worth for its price or not. and here packaging of a solution is always important in it value. So here Packaging is very important.
Now if you take India as a market you will find condition here is completely different than US and Europe. In India people usually do not believe on new product much. In India people usually purchase on trust. In India Trust building is much more important than Brand building. If your solution is very much useful for people then definitely people will buy. But at the same time you need to concentrate on specific customers. As mentality in Urban India and Rural India is different. take example of same Sauce. When you sell your Sauce in Urban India Where people are forward they usually go for Glass bottle for Sauce rather then Plastic bottle. And in Rural India people will buy plastic bottle as they think This are rigid and unbreakable. If someone purchase Sauce for more then one usages They will think that bottle should have thread so that we can close bottle properly. But in India scenario is completely different in India if you create enough trust for your brand then people will buy your product with out looking at its packaging. Example is Kissan Sauce. They have 2 different bottles for bigger bottle they have thread on their bottle as well as on its nob. but for the smaller bottle which people buy for multiple uses does not have thread. This way they are cutting on extra cost. and this is most important thing in an Industry. How you can increase your profit. and profit of 1 Rupee or 1000 Rupees. Profit is always Profit.

My take on this question is you should always look for the market before packaging the solution. Market survey is very important before packaging as it may help in cutting your costs.

Vigraha

When we see the title of this blog as Vigraha the obvious question comes to our mind that what is Vigraha? Vigraha is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it.in a more common language we say it as an Analysis. yes Analysis. Now the obvious question is how you define Vigraha with Analysis. When we check Sanskrit dictionary we will find that Vigraha has a different meanings such as Body, Expansion, Form, Shape.
Vigraha is to Expand certain Body in form or a shape which is useful to understand that Body. Start with Vigraha. Vigraha = Vi + Graha i.e. the substance or a body divided in different form and when we join this different form together we will come to a conclusion about this body. And of course Vigraha also means Conclusion.

This is my first blog in which I have Analyzed what the name of the blog means. VIGRAHA.