The government is looking at raising the FII investment limit in debt, says finance secretary Ashok Chawla
India sees a minimal impact from the Greek debt crisis despite some likely capital outflows in the near term, top policymakers said on Monday, reports Reuters.
Finance secretary Ashok Chawla said he expects the Greek sovereign debt crisis to have a minimal impact on India, while one of Reserve Bank of India’s (RBI) deputy governors, Subir Gokarn, said there may not be any impact in the long-term.
"There might be some nervousness among investors worldwide, which might provoke capital outflows from emerging markets in the short run, so there is a risk of short-term vulnerability of capital outflows," Gokarn said in a separate event in Kolkata.
European Union finance ministers agreed an emergency loan package on Monday that with IMF support could reach 750 billion euros ($1 trillion) to prevent a sovereign debt crisis spreading through the euro zone.
When asked whether the government was planning to raise the FII investment cap in both government and corporate debt, currently at $5 billion and at $15 billion respectively, Chawla told reporters, "We are looking at that." The finance secretary also said he did not expect any change in the government's market borrowing plan in the first half of the current fiscal year that started on April 1.
The government is on track to borrow Rs2.87 trillion in the period through September. However, higher-than-expected proceeds from the third generation (3G) mobile spectrum auction has raised speculation that the government's borrowing in the first half of 2010/11 could be lower.
A few websites claim to offer astrological predictions on share prices and market movements, for a hefty price
In response to a Securities and Exchange Board of India (SEBI) directive urging investors not to make investments based on astrological predictions and other unreliable sources, we at Moneylife decided to visit a website offering astrological predictions based on the positions of the sun, moon, stars, and various other celestial bodies. It was surprising that not only did the website offer general advice about the trend for the day; it even gave the reasoning behind the prediction, based on the position of a certain planet.
This advice was not for free; however, to get “accurate and reliable” predictions on individual sectors and stocks, one had to subscribe to the service for a modest fee of around several thousand rupees a month. Apparently, more specific predictions can cost even more.
This site is not alone; a simple search on any search engine will throw up a number of similar sites, all claiming to offer the same information, in spite of a SEBI directive specifically asking investors to stay away from such unreliable sources.
These sites all have several things in common such as guaranteed predictions—one site even claiming a 95% success rate and vague predictions such as “markets will be volatile”. More detailed predictions may perhaps be found once one subscribes to this service. A certain website even offers a one year “financial astrology course” admission to which is by “selection only”.
A simple analysis shows that the predictions given by these sites are either ambiguous statements or educated guesses based on upcoming events. For example, one site predicted that on 7th May, the markets would make a possible U-turn at around 11 am; conveniently, this was also the time the verdict in the RIL-RNRL case was due.
In view of this, such statements are at best educated guesses, and at worst, reckless speculation.
The basic question that occurs to all of us is that if seasoned traders and veteran market players cannot time the markets with certainty, how can an astrologer? More importantly, if these astrologers could predict the future, then why aren’t they in the list of India’s wealthiest people, or heading successful investment houses?
The fact that many of these websites exist and are growing means that not only do people believe such predictions, but are also willing to pay a premium for these services.
SEBI went as far as issuing a note of caution “The public in general is advised not to fall prey to or be lured by such sources of information promising quick gains and unrealistic high returns. It is advised that investors should take well-informed investment decisions.”
The customers these websites are targeting are not uneducated daily wage earners, but middle-class white collar workers with access to a computer and a trading account. That these customers are not only willing to pay for these predictions, but also risk large sums of money based on this information shows that a significant number of investors believe that the biggest bull on Dalal Street is not Rakesh Jhunjhunwala, but someone far more divine.