Sensex goes up 900 points on foreign financial institution buying as SEBI gives in to carry traders – the smell of bubble in Indian economy
Rita Nair
Oct. 23, 2007

Sensex went straight up. The Foreign Institutional Investors (FIIs) are busy speculating in Indian markets. The smell of the bubble is clear. Indian Finance Ministry led by academician Chidambaram is enjoying the ride for the time being. The finance minister interestingly called on US and other developed nations to contain the bubbles around the world especially in the emerging nations.

Security Exchange Board of India (SEBI) gave in to the demands of the FIIs. SEBI will allow proprietary sub-accounts of foreign institutional investors (FIIs) — i.e. sub-accounts that are formed to invest their own money — to issue P-notes provided they apply to register themselves with SEBI in the next 24 hours. The greed of Indian Government officials is the root cause of the bubble and when that bursts, Indian economy will plunge into deep depression.

The gray market in Ahmedabad is making good on the American and European FIIs. There are reports FIIs are even participating in under the rug market to get hold of IPOs before the official listing. In the process many of these FIIs have bought stocks that do not even exist.

The size of the bubble in Indian stock market is huge. The Government has failed to contain the bubble. The long-term effect is nasty. The FIIs are trying to lure common people in India into the stock bubble frenzy and then dump the market on the natives..

It is unfortunate that Indian oligarch controlled Manmohan Singh Government could not contain the FIIs. It will be interesting to see how they behave when Indian market bubble bursts. The greed among native Indians is so high that the FIIs are finding easy to create the bubble and dump the market on them.

Foreign Institutional Investors (FIIs) does it again – Sensex zooms 879 points with speculative buying as SEBI gives in completely to FII demands but Sensex goes down down 515 points from intraday high
Lirit Chauhan
The bubble is massive. It looks bigger than the American bubble in 1929 and Japanese bubble in late eighties. The market probably will collapse with a 5,000 point single day crash which will be the start of multi-decade bear market.
READ MORE>>

Sensex goes up 900 points on foreign financial institution buying as SEBI gives in to carry traders – the smell of bubble in Indian economy
Rita Nair
The Government has failed to contain the bubble. The long-term effect is nasty. The FIIs are trying to lure common people in India into the stock bubble frenzy and then dump the market on the natives..
READ MORE>>

Sensex opens lower, reverses and closes up as SEBI backtracks on its threat on Pnotes – the market may follow US market downwards
Babu Ghanta
The FDI inflow can reverse as the US companies face credit, liquidity and profit crunches. The bear market in Sensex will see some nasty crashes as the FIIs pull out and run for cover in 2008.
READ MORE>>

The gray market activity points to a much lower Sensex in coming months
Nitish Patel
It signals red for the main stock markets in India. Past correlation and time series studies found gray market in India setting the trend a month or so ahead of the main stock exchanges.
READ MORE>>

The foreign financial institutions sold Rs. 4000 crores of stock taking Sensex in a climatic reversal of 750 points
Preeti Singhani
It was the foreign financial institutions that created the bubble in Indian stock market. Now they are in the mood of exodus. Sensex fell nearly 4 per cent today after an early rally to a record high.
READ MORE>>

MORE ARTICLES >>