The close relation between overnight MIBOR (Mumbai Inter Bank Offer Rate) and weighted average call money rates is a really conclusive story for a retail investor in India.
The sheer similarity and correlation between the two rates (0.99) has been well highlighted. Such articles can help investors predict the nature of the derivatives market which still remains an unsolved riddle for some.
The slight divergence between the two rates has been reasoned out well by experts.
However, not much was said about the Libor rates, even though it was stated in the headlines. The comparative performance of the Mibor over the Libor and the movements of the latter in the futures market, London International Financial Futures and Options Exchange (LIFFE) could have been highlighted.
Such technical analysis will certainly lift the sentiments for the futures as well as the spot markets.
The US President, Mr Barack Obama, has gone overboard in offering prescriptions to India on investment climate. India has its own compulsions and requirements and it cannot blindly follow the prescriptions. Mr Obama wants India to open up its economy more with an eye on the US Presidential elections.
The Indian Government agrees with Mr Obama’s observation that the solution to Kashmir is a bilateral one. Pakistan-sponsored terrorism and composite dialogue cannot go hand-in-hand.
The US is not unaware that the economic aid given by it is being diverted to strengthen the hands of terrorists against India.
K. V. Seetharamaiah