Wow! Suddenly, there has been a rush of Foreign money into the Indian markets spurring them higher.
It is true that Central Banks all over are pumping money into the system - the ECB promised to guard the Euro and protect the Euro nations, the Federal Reserve launched QE3 and has promised to keep it going till the economy shows definite signs of improvement and other Central Banks too have followed suit.
The Indian Government, on the other hand, has woken up from a deep slumber and unleashed a barrage of reforms. Perhaps, shedding the extra baggage did the trick. In any case, reforms were overdue and as we had discussed in an earlier post (see: Light At The End Of The Tunnel), when things get depressingly bad, it is a sign that we are forming a bottom and should start looking out for a turnaround.
It can be said that in India's context, there has still not been any turnaround in growth on the ground. However, the markets have started to power up. It is a long standing belief that India is driven by Foreign money ... and a steady uptick in Foreign capital should mean that growth should start trickling down to the ground pretty soon.
FDI in Retail is a very important step forward for India. One is already hearing of big retail giants making inquiries with small suppliers. Contradictory to many beliefs, the small suppliers are really positive about the prospects!
There are several topics related to reforms that can be discussed in later posts.
For now, let us take a look at the impact that all of the above points have had on the USDINR chart and inversely on the Indian Stock Market (you should know that the Indian Stock Markets are inversely proportional to the USDINR chart ... in a general sense)
As was expected (see: Deglobalization and the Second Swadeshi Movement), a big move in the USDINR chart has come and it seems like the USD has broken down against the INR. This should be great relief for all the sectors that were suffering because of a higher dollar - also, to the Government, as it softens fuel prices to an extent.
We have to keep an eye on the chart and look for signs of a consolidation and take it from there.
For all the investors who were sleeping for the last month or so ... WAKE UP!
The rally has begun!
Make hay while the sun shines!
Cheers!
It is true that Central Banks all over are pumping money into the system - the ECB promised to guard the Euro and protect the Euro nations, the Federal Reserve launched QE3 and has promised to keep it going till the economy shows definite signs of improvement and other Central Banks too have followed suit.
The Indian Government, on the other hand, has woken up from a deep slumber and unleashed a barrage of reforms. Perhaps, shedding the extra baggage did the trick. In any case, reforms were overdue and as we had discussed in an earlier post (see: Light At The End Of The Tunnel), when things get depressingly bad, it is a sign that we are forming a bottom and should start looking out for a turnaround.
It can be said that in India's context, there has still not been any turnaround in growth on the ground. However, the markets have started to power up. It is a long standing belief that India is driven by Foreign money ... and a steady uptick in Foreign capital should mean that growth should start trickling down to the ground pretty soon.
FDI in Retail is a very important step forward for India. One is already hearing of big retail giants making inquiries with small suppliers. Contradictory to many beliefs, the small suppliers are really positive about the prospects!
There are several topics related to reforms that can be discussed in later posts.
For now, let us take a look at the impact that all of the above points have had on the USDINR chart and inversely on the Indian Stock Market (you should know that the Indian Stock Markets are inversely proportional to the USDINR chart ... in a general sense)
As was expected (see: Deglobalization and the Second Swadeshi Movement), a big move in the USDINR chart has come and it seems like the USD has broken down against the INR. This should be great relief for all the sectors that were suffering because of a higher dollar - also, to the Government, as it softens fuel prices to an extent.
We have to keep an eye on the chart and look for signs of a consolidation and take it from there.
For all the investors who were sleeping for the last month or so ... WAKE UP!
The rally has begun!
Make hay while the sun shines!
Cheers!
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