Friends,
There has been pressure on current account balance recently which is about -2.3% of GDP due to out-flow of funds from the equity market. The out-flow of this order is not a cause of worry and would be made up by the recent liberalisation in respect of the debt intruments purchase by the FIIs. Since there has been out-flow of the funds on account of the selling by FIIs ( may by those who have had their fingures burnt in US Sub-Prime Mortgage crisis), it has made the market safer and inviting. It may never be the case that the FIIs will keep selling irrespective of the strengths in the respective stocks. It is also not that they will not come back to buy if the markets holds promise or when the India has weathred the crisis on account of high crude prices.
My suggestion to all concerned is to not just sit on fence but commit funds in market with a medium to long term view. Nifty has been showing strength and close at high point yesterday at 4572.
HariOm,
krsnaKhandelwal
