A ring side view of the unfolding financial crisis is a great opportunity to study reactions to unbridled human greed gone too far.
Anyway, the latest idea of the financial authorities to increase foreign investment limits in Indian markets is the topic here.
I remember a few days back someone coming to the conclusion that inspite of innate strength, the Indian markets were bleeding because FIIs (foreign institutional investors) had taken out their inverstments due to the losses suffered in their home markets. In this light, the new move seems to be an invitation to greater disaster the next time round.
What is needed is for some time to pass for things to get accustomed to the new realities. Already a lot of money is released into the system by reducing the parking requirements with the central bank, so why the hurry to allow greater FII intervention in local markets?
Those seeking solid investments are having a great time. With stock prices at their 2 year low, it is a great time to get a chunk of companies that are in the field of infrastructure, retail, consumer goods.
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