The SEBI announces a slew of measures to check dubious funds. This is the proverbial act of closing the barn door after the horse has bolted. It is common knowledge that if serious investigations were to be made in the antecedents of the funds flowing into our stock markets, overnight the market would be standing at least 20 percent down.
Everyone has been crying hoarse about the black money being sent out of the country to be hidden in some numbered account etc. It is a myth. The powers that be, know this has come back to India in the form of FII investment and getting laundered. The money is now parked in India for safe haven and for use during the elections. At the slightest sign of any weakens of plans being derailed, it will vanish into the global financial space as quickly as it came. May be the what people meant by Modi being a business friendly person, is literally taken to heart and all want to bring their money back into India. Do we hear the BJP clamoring about the black money issue nowadays? Neither do we hear the new kid on the block asking questions about these funds.Kejriwal depends on such funds too, nobody looks at the mouth of the gift horse even if it is peanuts compared to the well-established ones.
The lesson to be learnt and understood is that if you belong to the class known as retailer, use this opportunity to cash out your portfolio take a holiday and come back to the market after the elections if mission 272 is a failure then you can pick the same stocks at 5200 or 5300 levels. And invest wisely then without distractions of these locusts. Do what the DII’s do sell, sell and sell. They have been doing that for nearly an year.
Even if s strong and stable government does come in, whatever the color of its flag or shape of its symbol, it will take time for it to settle down and see if they can revive the economy, which is in shambles in any case. Provided the world economy and the number two is not dragging the number one down with it. Then all those below on the totem pole will be taken down too.
Remember dear retailer, cash is king, and the market now is the last place for it to be invested in.
Will we see a Bill Ackman in India? A nation of billion plus people ….I hope.