Missing pieces in the Jigsaw Puzzle
Last week the media (both social and mainstream) was buzzing with the "source based news" that the government may be considering yielding a controlling stake in public sector oil company Bharat Petroleum Corporation Limited (BPCL) to some large foreign petroleum company. There was however no hint of confirmation from the "official sources". On Friday, The stock price of BPCL jumped sharply on the basis of this news. However, most of the gains were given up within 5 minutes of the market opening on Monday. The fall was apparently outcome of the rise in global crude prices due to attack on a large oil facility in Saudi Arab. The enquiry with some large brokerages and traders indicated that the traders, who bought on Friday, were mostly in panic throughout the weekend and capitulated into selling their positions as soon as the opening bell sounded on Monday morning. This stock price movement, though it confirmed the "herd mentality" theory of...