The current market is in a significant correction phase. So one is tempted to watch the similar high-pitch market drama movie Baazaar. It stars the versatile Saif Ali Khan as the big bull Shakun Kothari. So, get inspired! Here is my observation of certain situations in the movie on what to do, what not to do, especially while investing in the markets!
Check out 5 interesting observations from this entertainer! It doesn’t get any simpler than this!
Situation 1 - Shakun (Saif Ali Khan) gets a tip on the Agni Pharma stock getting approval for a diabetes drug. He approaches a large stock owner to sell his stake, but is unable to convince him. So, Shakun creates a rumour through his political and media connections that Agni Pharma’s approval is rejected. This succeeds in driving the stock price down. The stock owner panics and is forced to sell it in to Shakun at a much lower level.
Observation 1 – Don’t follow rumours, check facts! From this observation, you’re inspired to ignore rumours spread by the media. It is imperative to do your own research. Check the facts first. Don’t react to panic in the market. A fundamentally strong Agni Pharma, company running for 20+ years had not even applied to the FDA for the drug approval. How could it get rejected?
‘Do not panic or fall prey to rumours, check your facts and fundamentals before reacting, always.’
Situation 2 - The protagonist Rizwan Ahmed aka Rohan Mehra learns about a stock Ankita Paints’ tie-up with a foreign strategic partner from his colleague Radhika Apte playing the role of Priya.
He buys a huge quantity of shares for Shakun delivering a huge profit in a day’s time. Once the news is out, the stock jumps significantly making a killing for Shakun in a day. He becomes Shakun’s blue-eyed boy.
Observation 2 – There are no short cuts to real success! It’s later revealed that it was a plot, a trap for Rizwan Ahmed. This instance inspires you to not blindly trust your sources.
When getting such insider information, you must ask the question – Why am I being fed such privy information? What’s the objective?
The learning is clear. The market is a place where trapping others with smaller gains for a larger objective is always played out by people with vested interests. So, avoid looking for easy, instant gains.
‘One must be cognizant and focus on real ways of earning money from the markets, not look for shortcuts such as tips and insider information. They will lead to a bigger loss in the future.’
Situation 3 – Shakun made Rizwan the new CEO and partner of his newly acquired Telecom Company. The company expected to get the spectrum in the telecom auction enabled by the political connections of Shakun Kothari. The company is expected to get the spectrum in the telecom auction enabled by political connections of Shakun.
The stock of the concerned telecom company is promoted and sold to all retail customers, and it mops up a large shareholder base. Later, Rizwan realizes it was all a trap plotted by Shakun to play a much larger game as the telecom company is not given the spectrum. He has been cheated by Shakun, and so have been many retail shareholders.
All of this has been part of the ploy planned by Shakun. Therefore, he sells his shares at a higher price and encashes them while duping retail shareholders of their money.
Observation 3 – Question for real reasons, follow fundamentals of business! You may get to know of a stock that is zooming up significantly, especially on a day-on-day basis. Rumours may persist about a strategic move that will change the fortunes of the company. Through this anecdote of Rizwan getting double-crossed, you’re inspired to question the fundamentals. Don’t get carried away into investing in a fund that’s become an overnight celebrity stock. It could be a trap, and can take away most of your invested amount.
‘Please study on why you are investing in a stock, not just because its trending. Investing in a stock is investing into a business, becoming a part owner of a business. It’s important to know all the details of the business and the investment has to be done in real, functioning and sustainable businesses.’
Situation 4 - Rizwan wants to make it big, speedily and is ready to cross the line to make it to the top. He goes for it. It all comes to him, only to understand much later that it was a trap. He was made to believe he was utilizing his intelligence and smart work whereas he was used as part of a big fraud involving the market.
Observation 4 – Look for real, gradual and sustainable returns! Everybody desires quick money, wanting to outsmart the market every time. Even if you succeed for a shorter duration, you might get trapped for a much larger loss. Rizwan’s misstep in Baazaar enables you to question your supposedly intelligent moves while revealing that you can’t make quick money all the time. Focus on a sustained model of making above-normal returns from growing businesses, rather than quick money tips.
Situation 5 - Rizwan wants to follow Shakun’s footsteps, but hasn’t done enough research on his professional modus operandi. He ends up paying for it when Shakun gets him in trouble with regulatory authorities while making good money for himself.
Observation 5 – Don’t blindly follow the big market names! Everyone wants to copy someone, follow the leader and his style. By following the ideas and strategies of successful market players, you assume that you can also make it big. Guess what? You can pass the exam while copying, but you may not gain the knowledge.
Rizwan’s behaviour motivates one to do their own homework and hard work in investing. As you wouldn’t know the strategy and game plan of the market leaders’, it makes more sense to create your OWN!
Baazaar is an intriguing film that presents you with real-life market scenarios. It encourages you to question your thinking patterns and underlying behaviour that you might have not even given much thought to.
It’s definitely this season’s must-watch drama to be enjoyed with friends and family. For those who have watched Baazaar, they might greatly relate to it. Those who are yet to watch, may want to see how the action unfolds. Learn and get entertained too!
Disclaimer: The views and the observations expressed are solely the opinions of the author. They have no relationship whatsoever with the representation of the characters or the perceived outcome of the film.
