i Develop Stocks Advisory

Have FII sold....?

What the best analysts in the market feels.....

"As we know FII Have invested 65 Billion USD till date in India and its market value is 250 USD billion i.e 40% of free float in sensex and nifty .

So if crash happens they tend to loose the most after promoters (30-40% of NAv)

They have sold shares worth 2 billion USD which itself represents a large figure but is not even 1% of their entire holding.

So they are sitting with 99 % of their core holding intact which I assume they won't sell at this price since prices have crash to such extent.

But indian retail public has panic and sold all their core holding as if there is no tommorow

FII will never sell their shares as they won't find a cheaper market at 14-15pe with 8.5 % GDP growth and 20%+ corporate earnings .

Now Fed will cut interest rate till 2.5% to 2 % from existing 4.25 % which will be followed by all the central banks cutting interest rates as they would not want their currencies to appreciate against greenback in a big way.

FII know this very well...Just imagine what interest rate cut can do ..... it can do wonders to Real estate and automobiles .... consumer goods ....and in general to economy.....

It will make equity as more attractive form of investments than FD

what US recession can do ??

I feel it will do more benefit to country like india Where imports are higher than exports

Crude and commodities will go down to more sensible and desirable level to $ 60-70

Cost cutting will mean more work coming to India ( in form of BPO KPO etc)

Just stay calm and try to analyse this situation as there is more benefit than trouble ... hold on to your stocks as they will give u more return than any other form of investments ..

Have a nice day ..

Stay calm ...... this time will pass ..and may convert to a better one soon"

CONTRIBUTED BY ONE SUCH ANALYST WHICH WE BELIEVE COULD BENEFIT TO ALL OUR MEMBERS IN GOOD SPIRIT AND ZEAL.