Business Daily from THE HINDU group of publications
Monday, Oct 22, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Oct 22, 2007 ePaper | Mobile/PDA Version |
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Mentor
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Stock Markets Columns - Sticklish Issues Sensex springs surprises
Though the fundamentals of the economy are strong enough to attract retail investors, their participation is limited. It is FIIs that are propelling the Sensex. The much-awaited correction in the market has remained elusive. It is rumoured that terrorist money is being invested in the markets. The appreciating rupee has further compounded the problems. The Securities and Exchange Board of India (SEBI) has proposed restrictions on participatory notes (PN) — an offshore derivative instrument (ODI) — used by foreign investors to invest in the Indian stock market. Investors opposing this move were all either barred by SEBI or were not willing to get themselves registered. Though higher returns can be earned in the long-run, it not advisable to be a short-term player. With increased globalisation and integration of the Indian economy with the rest of the world, the volatility would only increase.
Krithivasan, e-mail It is not surprising that the volatility in the stock market has left the Finance Minister, Mr P. Chidambaram, puzzled. But what he should remember is that every thousand-point gain is not the same. When the index moves from 2000 to 3000 points, it makes it a 50 per cent increase, but when the same index moves from 18000 to 19000, the percentage increase is insignificant.
R. Swaminathan, US More Stories on : Stock Markets | Sticklish Issues
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