Capital Market Growth It is undoubtedly true that last century has seen a tremendous growth of interaction and participation of the world. Be it in terms of economics, society, culture, or politics, participation from major economies improved continuously and this helped in the designing of policy reforms of economies for faster growth. If we talk […]
Foreign Institutional Investment Every day we come across the term foreign institutional investors. FII portrays the image of any giant hovering over the Indian equity market with the ability to shower bulk cash which in turn can yank up or hammer stock prices easily. These investors control 40 per cent of the freely traded stocks […]
Increasing Oil Prices is the biggest Achilles Heel of the Indian Economy heavily dependent on imported oil products.The government will have to either raise the prices leading to adding fire to the already high inflation or compensate the badly bleeding half privatized Oil Companies like IOC,BPCL and HPCL.These companies generally make massive losses despite having private investors apart from the government.Compensating these losses would lead to a higher fiscal deficit which would add to the inflation pressures anyway.Note a recent survey revealed that the Indian Middle Class has cut its expenditure on shopping,eating out and entertainment by a whopping 65% due to the high inflation.However the Indian Stock Market has seemingly discounted all these factors going up by 10% in 10 days on the back of a global rally.Bernanke Fueled Cheap Money is Circulating Hungrily across the Globe and currently India seems to be the fashion trend of the month.Note these hot money flows can reverse equally quickly leading to a sharp market crash just like the Jan-Feb one as fundamentals hardly support this kind of rally.With government intervention and distortions becoming the overriding factor in the stock markets,Free Markets and Fundamentals have taken a backseat.