FII, QFI, NRI AND FVCI TO COME IN SINGLE WINDOW—STOCK MARKET TO EXPAND It is like imaging a world without borders where FII is equal to NRI is equal to FVCI which together will form QFI. The only discrimination is between portfolio investment and non portfolio investment. Though it appears utopian scheme; however if Finance Minister P. Chidambaram is to be believed this dream could be soon a reality. Stock market will gain massively from this development and nifty will witness a quintenessial inflow of fund. The intraday traders in nifty future and nifty option will see a new age of investment. Marching ahead in the stock market momentum, two committees have been set up to map the mirage. One committee under the former cabinet secretary to look at harmonizing portfolio investment routes—and another by the finance ministry under the economic affair secretary to define what distinguishes FDI and...
While the Indian stockmarkets were not generous to investors (declined week-on-week), the rain gods gave a handful to Mumbai and as usual, the city choked during the last week! This did have an impact on the daily volumes traded, which was low in the first three days, only to gain momentum in the later half. Despite a weak start, there was selective buying interest in some sectors. But sentiment was dampened following the Prime Minister's decision to keep disinvestments of public sector units on hold (read Neyveli Lignite Corporation). This time, it was not only the 'Left' that was 'as usual' against the move, but also an important ally from Tamil Nadu (DMK). Incidentally, DMK was a strong supporter of disinvestments of PSUs under the erstwhile NDA government. Besides these domestic concerns, global factors such as North Korea testing missiles and renewed worries about interest rates increasing in Japan added to the nervousness. In this backdrop, it was a tug-of-war between the bulls and the bears with bears winning the battle towards the end of the week.
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