navin advani
Well-Known Member
Increasing influx of FII funds, raising stock values, lowering $ up to a point. When they sense that a plateau has reached, they start liquidating their stocks as a result of which, stock market goes on a downward spiral and the $ will appreciate. This happens till sotck market (and rupee) hits a low and the cycle repeats.
Once Greece defaults, there would be a turmoil of falling stocks all over the world and our stocks would be no exception. It would not be difficult to guess what FIIs would do before that inevitable happens.
Capt. Not to go completely off topic but ...
a. The last increase of the $ (vs the Rs) was not related to FII inflow but becuase the RBI which normally inslulates the public from large payments (in this case totalling about $5 bill.) for Oil (Iran) or Arms (Various) but it did not do so this time. Why dont ask me. I dont know enough.
b. If Greece defaults, yes every stock index in the world will get affected but India is better insulated among the siginificant economies (note I did not say major as we are still not a major economy like say China, Japan, US, etc are).