No one in Mumbai can be a trader/investor until and unless he has traveled in the local trains where the wisdom of years of trading are available for free by Gujju/Marwari traders. I traveled for 4 years in the Mumbai local. This is a story of one such exploit.
The Mumbai local in the morning is largely filled with traders rushing to the market and in Mumbai all brokerages operations teams are largely Gujju or Tamilian. While the Tams are known to be quiet and reserved, the Gujjus are verbose and are very quick in giving Tips. On one such morning, a very loud Gujju was recommending a BUY tip on ACC to everyone. Given the confidence with which he was recommending, I was sure he had some inside information, and I went and asked my Cement analyst to look into ACC if anything was brewing. The Gujju analyst immediately called a few of his connections and found nothing. I still insisted and he realized I had some Inside information. The Analyst quickly released a sales note recommending our sales team to push ACC stock, as cement prices are expected to firm up.
The next day I saw the gentleman in the train again recommending ACC stock to everybody and with much more enthusiasm. I went back to my office and mentioned to my Head of Research (Another Gujju) that something was cooking in ACC. The HoR summoned the cement analyst and asked him his views on ACC. The Cement analyst on seeing interest from both HoR and me in ACC, assumed something was brewing in ACC and released an Upgrade report.
The next day, I saw the gentleman in the train even more verbose and recommending everyone to BUY ACC. I bought a few ACC stock for myself that day and called up some Fund managers to enquire about it. The Fund managers were unaware of ACC stock, but he said he will check with the cement analyst of other brokerages. Over the next few weeks, multiple upgrade notes were written by other brokerages as they saw Fund manager’s regular query on ACC.
Later, that week, the ACC stock had climbed by 10% points and I saw the gentleman in the train still recommending it vociferously. I approached the gentleman and asked him the reason for his bullishness. Given he knew I was an analyst, he informed me, I had seen the technical charts of ACC and was recommending it based on charts. Then I came across a sales note from your brokerage which got me more excited. After that, I saw an upgrade report from your house and followed by other houses so my conviction increased and I have been recommending it to everyone.
That day, I went and sold my position and started to listen to loud music on train.