|
|
|
|
|
|
| |
| |
By Category |
 |
|
|
| |
|
| |
| |
India On Media |
|
|
|
| |
|
| |
|
|
| Others
News |
|
| Indian share market sees 9% slump |
| Trading on India's main stock index, the Sensex, was suspended briefly on Wednesday, after the market slumped 9%.
|
| INDIA
, 17-October-2007
2:38:31 AM |
| The fall came after the stock market regulator proposed urgent curbs on the flow of foreign funds into shares to stop the market overheating.
The Sensex sank to 17,544.15, after Tuesday's record high of 19,174.45, while the rupee also lost value. Trading resumed after an hour.
India's finance minister said that there was no need for alarm.
Some of the early losses were clawed back when trading resumed, with the Sensex down 6.1% at 17,799.69.
'Abundant investment'
The regulator's recommendation relates to participatory notes - a form of investment used by hedge funds and other foreign investors who are not registered in India.
The notes present problems such as uncertainty over who is putting money into Indian companies.
Finance minister P Chidambaram said that foreign investment was still welcome and that a ban on the notes was not intended.
"But presently it is important to moderate capital flows, which are getting very copious and abundant," he said.
Analysts at JP Morgan suggested that of the $17bn of foreign funds invested in India so far this year, about $10bn has been in participatory notes.
"Investor sentiment is likely to weaken considerably as an important source of potential inflows has likely been plugged," said Rajeev Malik, an economist at the firm.
|
|
|
|
|
|
|
|
ADVERTISEMENTS
Free offer!!! Become an administrator for your zip home page, "Post" local news (local to your postcode)& pictures, "Post" advertisement banners from local companies. Make Extra money.
|
 |
 |
|
|
| |
|
