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Monday, 11 June 2012

Market Participants( who's mood can change the direction of Share market)

There is no certain direction to our Indian market. There are many factors that influencing our market. Inflation, rupee depreciation, GDP, fiscal deficit, IIP etc. all these are depending on the political views and also depending on the mood of the main market participants including individual retail investors, Institutional investors.

Institutional Investors:

Institutional investors such as mutual funds,banks,insurance companies and hedge funds and also publicly traded corporations are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets.

Foreign Investors:

FII(Foreign Institutional Investors),Non resident Indians(NRI's) and persons of Indian origin(PIO's) are allowed to invest in the primary and secondary capital markets in India through the Portfolio Investment Scheme(PIS) .
FDI (Foreign Direct Investment) plays an important role in the long term economic development of a country not only as a source of capital but also for enhancing competitiveness of the domestic economy through transfer of technology, strengthening infrastructure,raising productivity and generating new employment opportunities.
FDI also has an important role in enhancing exports.
In India FDI is seen as a development tool.

So we must encourage foreign investors to invest in our market.

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