Hot Money Frenzy !!!
Riding on the back of Hot Money Nifty has scaled past 6000 levels . But the retail investors are mostly absent from the party . And the reason isnt too far to seek -- scars left during global meltdown of equity mkts have left bleeding wounds in its aftermath!
FII fund flow trickle has turned into a flood in indian markts as the cheap money (better called Hot Money) finds its abode in india . Rationale economies have imposed curbs to check this colourless form of money which causes "Irrational Exuberance" but in india we call it by the name of "Cautious Optimism" . Its a myth to say that present rally is a testimony of india's growing clout --its just a testimony of our lack of spine ! Why cant policymakers learn to call spade a spade? Why are they shying away in imposing curbs on this flow which is severely distorting our trade balances?Why cant we step in and stem the tide before our export-oriented sectors bleed to death?From IT sector to textile sector to leather sector to precious stones market all are bearing the burnt of the sharp rupee rise . But is the government listening to their woes? How long would it remain a mute spectator?
Coal India IPO --the biggest IPO in the history of indian equity markets has come . Its success is crucial to public exchequers coffers .While the issue is attractively priced and with 5% mandatory discount to retail investors , its making all the right noises and the grey market premium is Rs 15-20(subject to daily fluctuation but reflective of broader sentiment ).The world would be keenly watching its listing and government needs FII crutches to ride it through the boom. Hence the reluctance on curbing the inflow .
posted by rocky at
9:53 AM
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