If the surge in dollar inflows continues and there is pressure to keep rupee appreciation in check, it is expected that RBI could further monitor inflows, including those in real estate, lower domestic rates to encourage inflows and propase more measres to encourage outflows.
SEBI's approval of the draft circular on P notes come on the back of strong trendsin capital inflows and in attempt to temper the pace of rupee appreciation. The 50 bps cut in the fed funds rate, forex reserves have risen by $57.5 billion during the fiscal year.
The proposed P note measures would temper the pace of portfolio investments coming to INDIA. But even if one excludes all the portfolio flows, it is estimated that capital flows to be more than sufficient to finance India's current account deficit and there will be some increase in reseves.
The market currently though has been consistenly rising after the SEBi anoouncement of new measurements. However, if these measures are followed rapidly by large scale FII registration of entities currently using P notes it would improvetransparency in the maket which would bring more inflows.
Monday, November 12, 2007
Long ViSion
THERE IS NO PERSON IN OUR COUNTRY WHO IS UNTOUCHED BY THE BULL RUN OF THE STOCK MARKETS.
IN AN INTERVIEW GIVEN BY THE BIG BULLS OF THE STOCK MARKET ON CNBC-TV18, DURING THE INDEX OF 6000 ON BSE, NOT TO MENTION THE NAME. THEY CLEARLY MENTIONED THAT AT SOME POINT OF TIME THE SENSEX IS GOING TO BE AT 20000. DURING THIS INTERVIEW THE EDITOR LAUGHED AND QUESTIONED THE PERSON, ON WHAT BASIS IS HE SAYING THIS, THE ANSWER HE MENTIONED WAS THERE ARE GOING TO BE HUGE INFLOWS OF MONEY FROM FII'S DURING A SPAN OF MORE THAN TWO YEARS. ALL CAME TO TOGETHER, THE FOREIGN INFLOWS ARE INCREASING MAJORITY OF THEM COMING FROM PENSION FUNDS OF JAPAN AND US.
THE RUPEE WENT ON TO BECOME VERY STRONG. THE RUPEE IS AT A NINE AND HALF YEAR HIGH. INDIA IS GROWING AT A GDP 9.05%.
WE ALL MUST BE LIKE THE PERSON WHO HAD AN VISION OF HIS FIELD. WE MUST ADORE HIM AND THINK OF WHAT IS GOING BE AND WHERE ARE WE GOING TO BE IN THE NEXT FIVE YEARS.......?
HAVE A LONG VISION AND BE SUCCESSFULL IN LIFE...
IN AN INTERVIEW GIVEN BY THE BIG BULLS OF THE STOCK MARKET ON CNBC-TV18, DURING THE INDEX OF 6000 ON BSE, NOT TO MENTION THE NAME. THEY CLEARLY MENTIONED THAT AT SOME POINT OF TIME THE SENSEX IS GOING TO BE AT 20000. DURING THIS INTERVIEW THE EDITOR LAUGHED AND QUESTIONED THE PERSON, ON WHAT BASIS IS HE SAYING THIS, THE ANSWER HE MENTIONED WAS THERE ARE GOING TO BE HUGE INFLOWS OF MONEY FROM FII'S DURING A SPAN OF MORE THAN TWO YEARS. ALL CAME TO TOGETHER, THE FOREIGN INFLOWS ARE INCREASING MAJORITY OF THEM COMING FROM PENSION FUNDS OF JAPAN AND US.
THE RUPEE WENT ON TO BECOME VERY STRONG. THE RUPEE IS AT A NINE AND HALF YEAR HIGH. INDIA IS GROWING AT A GDP 9.05%.
WE ALL MUST BE LIKE THE PERSON WHO HAD AN VISION OF HIS FIELD. WE MUST ADORE HIM AND THINK OF WHAT IS GOING BE AND WHERE ARE WE GOING TO BE IN THE NEXT FIVE YEARS.......?
HAVE A LONG VISION AND BE SUCCESSFULL IN LIFE...
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