Is there an investment opportunity in PSP Projects shares?
Is this the right time to invest in the shares of PSP Projects, a company that does construction work for the government and corporate India? How much benefit will there be from investing in this stock? What targets are experts giving regarding this stock? Watch this video to know-
Volatility based on social, political, and economic environment is understandable in market-driven asset classes. Volatility based on an influencer’s volatile mood swings is not, even if that influencer happens to be Elon Musk. A single tweet with the power to create record valuations or wipe out millions of dollars of investor wealth is dangerous.
When Musk tweets, the world reacts. With 55.2 million followers, it is hardly surprising that he wields the power to influence change. On May 13th, Musk cited environmental concerns for Tesla to discontinue accepting Bitcoin as payment for purchasing its cars. A reversal from his February 8th stand.
To add insult to injury, the People’s Bank of China’s statement on Tuesday reiterating that cryptocurrencies would not be accepted as a payment token did not help matters either.
Two ill-times events sent Bitcoin prices spiralling down, erasing months of sustained gains and eroding millions of dollars of investor wealth.
India is precariously positioned on cryptocurrency regulations. The Subhash Chandra Garg committee had recommended an outright ban; the RBI did outrightly ban it; next, the Supreme Court quashed the RBI’s ban; later, Finance Minister said a calibrated approach would be taken; and finally recent reports suggest a new panel will recommend a revised regulatory framework.
Just as India’s homegrown currency exchanges began to rejoice seeing this new committee as a step in the right direction, the tumbling Bitcoin prices caused immense buying / selling pressure on crypto exchanges the world over leading many of them including India’s WazirX to crash on Wednesday night.
Investors took to Twitter to release their angst that they were unable to sell their holdings. In an unregulated market with ‘decentralised’ decision making – who will bear their loss? Indian investors need to stay cognisant of the fact that there are no stipulated safeguards in this so called ‘investment.’
On its part, the government must put an end to long-pending concerns about the legal and regulatory status of cryptocurrencies in India. Ambiguity needs to be replaced with clarity.
Crypto aficionados claim otherwise, but until a regulator comes in, investors should avoid jumping onto the Bitcoin bandwagon. At this point, calling it anything more than gamble would be injurious to wealth. Better be safe than sorry.