Posted at 10:21 AM , on August 12, 2015
The surprise devaluation of the Chinese Yuan by 2% on late Monday created nervousness among the global markets. Not surprisingly, Indian markets too responded with nervousness on Tuesday as the INR weakened below the psychological Rs.64/$ mark and the equity markets lost 3/4th of a percent. To be fair, China did not actually devalue the currency. It only made its benchmark methodology more market-driven and changed the mid-point, which had the effect of a 2% devaluation of the Yuan. The key question is, why does Chinese Yuan devaluation spook the global markets in general and Indian markets in particular? Continue reading
Posted at 4:41 PM , on March 2, 2015
Foreign Portfolio Investors have a lot to be pleased about…
The Union Budget announced on Saturday will surely go down well with the foreign investors. Uncertainty and lack of opportunities were the biggest complaints of foreign investors. This budget has taken the right steps and made the right noises.
FPI and FDI distinction…
The distinction between Foreign Direct Investment and Foreign Portfolio Investment was created in 1991 with a valid reason. A lot has changed in the last 24 years and this policy of demarcation made little sense. The budget has done the right thing by removing the demarcation between the two. Now companies with a high FII holding need not fear about being removed from the MSCI. Removing this distinction will give the much needed room to FPIs to enhance their stake in India companies. So far, so good! Continue reading