A quick follow-up to some of my earlier blog posts:
Earlier I wrote about impending regulations due to currency crisis, it might be worth noting the slew of opposite opinions coming in from PM's Economic Advisory Council (here), which categorically denies the need to have any new / additional regulations to be put in place to stop the flow of free money coming from US into India. Another one supporting that argument, Stephen King (from HSBC) says, India may not need to have such regulatory measures to be put in place...and the same can be done by tightening lending to real estate and other such measures.
Going by the recent minor depreciation in INR vs USD, looks like the markets support this view...but I'd still keep an eye open for this, for this'll affect the markets in a far bigger way that any other single fundamental factor. Besides, with RBI giving optimistic estimates of inflation coming down by December, markets might just be in a wait-and-watch mode...'coz if the inflation doesn't come down as expected / projected...RBI might put in some regulatory measures to prevent the flow of cash from US. But overall, for now, this news is a kick on my back - side !
In another post, I wrote about the markets not looking too good for another rally immediately. From that time, Nifty has moved down from 6300 levels to a little under 6100 at the time of writing this review. 200 points on nifty - not bad ! (pat on my back).
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