Sunday, July 4, 2010

FII and DII investments in India

When markets across the world are wobbling due to euro crisis and of recent concerns on china growing slowly our Nifty is not coming under any pressure till now. India looks all set for best performing market across the nations this year. Reasons might be linked to unexpected income to government from 3G license there by decrease of debt in its balance sheet and hopes of average to good monsoon this fiscal compare to last year.
DII Investments in Equities in month of june

DII took away some money from markets reason might be attributed to banks pulling away some money from MF's due to liquidity problems they had in june cause of 3G payments to government an advance tax payments.RBI came into rescue by timely Increase in Liquidity and Increase in Interest Rate . Increase in Liquidity is a temporary situation and increase in rates is for permanent solution

FII Investments in Equities in month of june :

FII were net buyers for most of the days during June and as expected markets were in green for most of days even though  markets across the world are tumbling cause of euro crisis and huge debts. But for FII's Indian markert is a good bet for now and Indian markets are set for a decoupling from world markets , but is it good?..we felt the same way when markets were going up in 2007 and we thought the same way(no one can stop India's growth) at that time also...but after a few months into 2008 our markets started tanking in the same way as that of world markets. Can we learn any lesson from it .

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