Friends,
Nifty closed at 3816 pts yesterday after continually sliding since 8th Jan 2008 and loosing 40 p.c. value over the period since then. Would you believe that this has come to happen for just Rs 29 K crs withdrawn by FIIs from equities since then while DIIs have put in Rs 5.5 K crs during the period. It is about 1/2 per cent of the total market cap and has diminished over Rs 20 lac crs of worth for people.
The above speaks of the lack of seasoned fund managers in India who get carried away easily. There is so much of domestic savings pool that whatever the FIIs offer may be lapped up without a dent in market but what you can do when everybody has to buy and sell at the same time. As for the fundamentals , there have been some results announcements from big companies for the 1st qtr of FY and none has been negative and a few have been quite uppish like that of HDFC. The sentimental perception may carry you far on the wrong side. Be slightly bold as you may see the most afflicted economy on account of financial crisis ie USA’s has still seen its markets behaving more resolutely. Its Fraddies and Fannies melting in USA and none like this in India. USA’s economy is bound to loose further edge because it is now not real economy and also not a cost effective economy. It was thriving on account of world’s money being brought there for being invested there or else where and the financial industry was able to have its cut. Now the world’s money is being managed mostly by its owners who got wiser after the foolhardy attitude of President Bush who would not listen to reason should he believe in something or cook upbsome thing.
Having trust is the first requisite before any body transfers money. I may add that inspite of promise of Indian economy the flow towards India is meagre due the loss of credibility. The loading of the burden of controlling inflation on the shoulders of a few industries like cement and steel is case in point. There have been many issues at the instance of left that do not go down well with the foreign investors. I think a more responcible govt may bring in the investments from the oil exporting nations. We have had good relations with them and are looking at parking places. The whole lot of petro dollars can not and should not be invested only in bullion,other metals and landed properties and hence some part of it has to be invetsed as risk capital and what better place than India for this. It has natural resources , it has human resources and it has technology as well as capacity to absorb new technology and lastly it has domestic market and is rightly placed on world’s map for access on west and east sides of the globe.
It is getting eleborate while I wanted to summerise some facts for you only. Please take the cue and prepare ground for gains in future.
HariOm,
KrsnaKhandelwal
