Thursday 20 September 2012
Change in RBI stance
Things seemed to have changed in terms of sentiment at least in the last few days for our market. But has it changed the game fundamentally? According to Nilesh Jasani, CEO, Jefferies Singapore, reforms, by themselves, may not really change much for the Indian market but if animal spirit or risk on causes the distressed companies to get more money then one can expect good times to come.
FDI direct investment by foreigners is less than 6% of total investments made in India. Jasani believes that the even if we get a few billion of dollars from foreign investors because of retail liberalization or aviation liberalization, it will not really change the game. “Our biggest problem is that domestic investments are not happening. Domestic investments, new project announcements are down 70-80% from the peak,” he said.
FDI direct investment by foreigners is less than 6% of total investments made in India. Jasani believes that the even if we get a few billion of dollars from foreign investors because of retail liberalization or aviation liberalization, it will not really change the game. “Our biggest problem is that domestic investments are not happening. Domestic investments, new project announcements are down 70-80% from the peak,” he said.
