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Rise in Sensex likely to boost investment
THE RECORD surge in Sensex on Monday has given a fresh boost to the investors in the city. Their faith in the capital market has strengthened and prompted them to make more investments in the capital market.
THE RECORD surge in Sensex on Monday has given a fresh boost to the investors in the city. Their faith in the capital market has strengthened and prompted them to make more investments in the capital market.
According to former Director of Uttar Pradesh Stock Exchange (UPSE) Vivek Saran, the recent rise in the sensex has broken the myth that the capital market is managed and controlled by the Reliance Group. But, the sensex rise has come at a point when the Reliance industry is facing a difficult time amidst dwindling financial and family situations and is not in a position to provide stability to the capital market.
He said the present rise was the outcome of the huge foreign investments and the interest shown by the dollar investors in India and they were convinced that their destination was India.
He said though China was a great threat to Indian capital market, yet the foreign investors were not interested to make huge investments in that country for the simple reason that India had a big youth-oriented consumer market than in China and investing in India would prove to be more profitable .
To a question, Saran said the present boom was in consonance with the International capital market which remained at higher Sensex all the time. And hence there could be no doubt of a fall in the near future. If all including the Government policies went in the right direction, the Sensex could witness further rise.
He said it was encouraging that at least the foreign investors had declared India in ‘asset class’ as against the ‘risk class’. This change in their attitude would definitely help the country to get more investors. He, however, said that market fluctuations and unpredictable swings would hit the market of and on but these situations would not affect the capital inflow from outside. He suggested that with the opening of new vistas for investment, one should not lack ‘trading caution’ to reap the benefits of the investment.
