It’s a little unnerving/disconcerting how fragile markets are right now.
In the last few days, there were two announcements that had very positive implications for the markets…
First, the RBI announced measures to ease external financing, support foreign capital inflows and deepen domestic bond markets in its most recent MPC announcement.
At around the same time, the government permitted Individual Persons Resident Outside India (PROI) to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme (PIS) (https://www.pib.gov.in/PressReleasePage.aspx?PRID=2269169®=1&lang=1). This access was previously limited only to NRIs/OCIs.
But the market just can’t seem to find a steady footing.
Since the news of a ceasefire in the Middle East on 19th June, the market trudged upwards from around ~23,910 to ~24,104 on the 22nd. Then on the 23rd, those gains were wiped out – in just a day – with markets heading back down to 23,824. Although DIIs and FIIs were both net buyers.
From here, do you think markets are more likely to continue to climb the wall of worry or slide on a ray of hope? Let me know in the comments…
Disclaimer: The views expressed are personal and for informational purposes only. They do not reflect any institutional stance and should not be construed as investment advice or a recommendation.
