When FII(related to capital market) remove all their money in a fortnight, what happened to Indian Economy?

Answer 1

Is the valuation of the stock market at a correct level at present or is it overvalued. When i was selling stocks in India i was asking my investors to be cautious at 9500 levels [sensex] now it is over 14500. To an extent lower valutions may dilute the premium in the IPO segment and business may not want to invest in new projects etc. This correction today is probable profit booking. Only 1% or so of the indian population is directly involved in the stock market and as you know FII's go to markets which have very high upside potential. A high stock market also enables the govt to divest its equity and plough the funds into say infrastructure. But if the gains are through speculation and arbidrage by short term players we need to be more careful. At every price the market particiapants are convincing in their arguments that the stock market is resonable priced. As you know india is a strong domestic economy with a large debt market as well.

Answer 2

24 Never Failing Rules 1. Amount of capital to use: divide your capital 20 equal parts and never risk more length of your capital on a one trade. 2. Use stop loss orders. 3. Never over trade. 4. Never let a profit run into loss. 5. Do not buck the trend. 6. When in doubt, get out. 7. Trade only in active stocks. 8. Distribute risk equally. 9. Trade at the best market. 10. Do not close your trade without good reason. 11. Accumulate a surplus. After you have made a series of successful trades, put some money into a surplus account to be used only in emergency or in time of panic. 12. Never buy a share to get a dividend. 13. Never average a loss, this is one of the worst mistakes a trader can do. 14. Avoid taking small profit and big losses. 15. Never cancel a stop loss order after you have placed it at the time you made a trade. 16. Avoid getting in and out of the market too often. 17. Be just as willing to sell short as you are buy. 18. Never buy a share because price is low. 19. Be careful about pyramiding at the wrong time. 20. Never change your position in the market without good reason. 21. Select the stock with small volume of shares outstanding to pyramid on the buying side, and the ones with largest volume of stocks outstanding to sell short. 22. Never hedge. If you are long of one stock and it starts to go down, do not sell another stock to hedge it .Get out of the market, take your loss and wait for another opportunity. 23. Avoid increasing your trading after a long period of profitable trades. 24. Never get out of the just because you lost patience or get into the market because you are anxious from waiting.

Answer 3

u'd think that we'd be ruined... but not completely
the public sector in India has a major share. so, even if FIIs pulled out (which they won't), the public sector would keep the eco running albeit a lot slower

Answer 4

It is like asking what happens if i am walking and suddenly a truck comes and bulldozes me. Such things should not be though as else u would only think of what happens if sky falls on me etc. Think of probablitites only.

Answer 5

sssssssssssiiiiiiiiiiiinnnnnnnnnnkkkkkkkk.