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nifty signals Trading System for the day trading in stocks, commodities, currency, with buy sell signals



Investment limit by all registered FII or sub accounts in primary or secondary markets under Portfolio Investment Scheme is subject to a ceiling of 24 % of issued share capital of a company.  The limit can be extended up to 49 % per sectoral cap if the general body of the company approves it.  It is important to know these methods before entering the stock market as investor or broker.  One must have knowledge about the stock market; that is true but equally essential is to know this theory which helps in making trading strategy.
FACTORS FORMING NEED FOR FOREIGN CAPITAL IN INDIAN STOCK MARKET
1.     1.     Development of basic infrastructure:  The development of any economy depends on the available infrastructure in that country.  The infrastructure facilities such as Roads, Railways, sea ports, ware houses, banking services and insurance services are the prominent players.  Due to long gestation period naturally individuals will not come forward to invest in infrastructure industries.  Government of India could not able to raise necessary investment.  To fill the gap foreign capital is highly suitable.  After the great fall of 2008, no technical analysis could prove effective enough to predict such a huge bull rally on DALAL STREET.  It happened simply because heavy flow of FII especially in infrastructure projects.
2.     2.   Rapid Industrialization:  The need for foreign capital arises due to the policy initiatives of the Government to intensify the process of industrialization.  For example the government of India is gradually opening the sectors to foreign capital to expand the industrial sectors.  The FDI in retail sector is latest one instance which reflects the firm decision of govt. to liberalize it to the extent possible.
These are the two main decisive factors which amount to deciding investment limit in Indian stock market.  
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