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You need both bears and bulls to create wealth on Dalal Street and to clean up the system.
Veteran investor Shankar Sharma says a bear market often helps clean up the system, as it exposes scams, which the bulls tend to keep hidden.
“I really don’t know why regulators around here hate bear markets.
Bear markets expose scams.
Bull markets keep them hidden.
Harshad, Satyam and now a massive list of scams or defaults are all out in the open thanks to a bear market.
Bear markets should be seen as ethical hacking,” Sharma said in his latest tweet.
Indian equity market remained highly volatile all through 2018.
During the year, the biggest banking fraud of India unravelled at country’s second-largest public sector lender Punjab National Bank.
PNB disclosed “unauthorised and fraudulent transactions” on the morning of February 14, 2018.
Up until the first quarter earnings, the size of the fraud stood at a little over Rs 14,000 crore (nearly $2 billion).
The prime suspects, Nirav Modi and Mehul Choksi, who were involved in obtaining fake LoUs from PNB’s Brady House branch have since fled the country.
Following the PNB fraud, several other ‘mini banking scandals’ emerged at Andhra Bank, State Bank of India, Union Bank of India, Bank of Baroda, UCO Bank and IDBI Bank.
PNB stock has lost about 55 per cent of value in last one year.
