Yes. This is the assessment I was expecting. Now a word of advice to Indian investors. If you want to invest, select your scrip and invest on your own. Dont wait for FIIs to take the lead and then follow. If your apprisal is sound, you should take the lead. FIIs have their own agenda. They invest well and withdraw well and in the process make lot of profit. The loser in India is when they withdraw. Please spear a thought for investment into smaller scrips...
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 12 20 2008 16:13:31 +0000
Yes, US crisis will enable Asia to gain. China and India in particular are poised to make a big leap in setting direction for world economy in the near future. Globalisation has indeed fetched lot of benefits to our industry. Our Indian companies are able to compete with reputed global companies, have expanded overseas net work and made a mark in IT, Science and technology. The impact of subprime crisis on the Indian financial system has been minimal, due to the sound monetary policies and risk management practices. As for dependance on the FII investments, the worst phase is over. With a major problem of inflation more or less abated, and FII s once again becoming net buyers in the stock market, the Indian economy has started shining once again. In a span of one year from now, Indian economy will be back to its glory. The conclusion from all these events is that our economy has strong fundamentals and with the benefits reaped from globalisation process and sound risk management practices India will be leading from the front in world economy along with China in the years to come.
By
veguru vijayakumar babu, Head/VP/GM-Finance/Audit, Sujana Group Of Companies
| 12 20 2008 05:07:23 +0000
I support durgarao's statement,but at one point of time emerging markets will be separated from the devloped markets.our main positive trigger is our population,any thing we manufacture we can sell in india itself with minimal profit.unlike US most of the loans taken from the bank will be paid.Our banks are safe unlike US,though we may face a slow down not a reccession.
By
m.sreenivaasan , Head/VP/GM-Equity, growell wealth management pvt ltd
| 12 12 2008 18:35:05 +0000
If there is a financial crisis in any developed country, then, it will be crisis of almost all the countries in the world except the countries whose share in the global market is less or whose dependent on imports is less. As such, the US crisis hits the entire world and its admitted by the experts too. Its the consequence of globalisation. China may be self reliant, but, its exports to US will get affected. Its all chain affect and its very difficult to lay a yardstick and codify the impact. But, its true that if anything happens in any developed country like the crisis in US, then, it affects the whold world, not only asia. For example we see the consequences of US crisis on India as: 1. As a result of less consumption and spending in US, our outsourcing countracts would get affected. 2. The companies in US, no more pays attractive salaries as due to overall slowdown, the consumer spending will get reduced automatically affecting the companies profits. 3. Our exports will get affected. 4. FDI may not come into India and we may face slow down as a result and the employment generation in india will get affected. 5. Imports becomes very cost due to the rise in the doller value as its simple caluculation of demand for one currency. As the doller is not buying rupee as was done in the past, the demand for the doller will be high and the rupee value against the doller will get automatically affected. 6. As US is in the process of restructing, the policies may affect us like the policies on outsourcing. Thus, it is very clear that, in the era of globalisation, if some crisis is there in the developed world, then, it hits the entire world. So, we must always work and have policies thinking that there can be a crisis in the developed at anytime.
By
V.Durga Rao, Private Attorney/Lawyer, V.DURGA RAO
| 12 12 2008 07:20:15 +0000
Asian contries will surely gain as they are growing systematically under the presence of their strong regulators .Now Asian would have less restictions /pressure from US for while taking any major economic decision as their (US)economic condition is into doldrums.With low cost of living, better consumption pattern ,increasing litreacy level ,technology upgradation,better terms of trade and balance of payments and lastly the difference in GDP growth of both the continents will make asian tommorow's superpower.
By
sandeep mehta, Relationship Manager, Idbi Bank Ltd
| 11 23 2008 05:50:47 +0000
There is every possibility. Asia / "Chindia" may well take this opportunity to lead. The whole world is looking forward to see our rise. Every Indian should strive hard in all fields to grab this opportunity. We have been spared ( to some extent ) from the "Turmoil" as our businesses are run on ethical values, our people do not like to live on " Credit Only", we have good growth of domestic savings, we have worked hard for upliftment of general people ( more remains to be done), our Banks did not encourage 'hybrid instruments', they did not over leverage their capital and FINALLY our Banks are Universal Banks etc. Thanks.
By
ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India
| 11 22 2008 20:10:04 +0000
Thats exactly my point too. Lets start investing in India. We want the world to invest in India and why we should not take the lead role in investing in India. The flaw and imbalance in investment and export arises from the fact that FII investment in India is restricted to few sectors and in very large measure. It is the small and medium size investments that are need of the hour. Large investments are anyway happening. The Export/import imbalance also needs to be addressed. While on the subject, where does reliance life insurance park its funds?
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 11 13 2008 10:02:40 +0000
actually we are not a strong economically grown country but we look as if we are , fundamentals like agriculture and agro product , infra structure and economic imbalance should be viewed seriously and our export should overtake our import , so we can achieve a positive growth . this should need a strong economical statergies , we should not depend on western ideas for this we need to develop our own startergy which should fit for us . this may take some years to achieve our target
By
M.dhinesh kumar, Sales/BD Manager, Reliance Life Insurance
| 11 07 2008 04:07:12 +0000
as India is leader in Asian countries,time has come to project our economies strong points to them.....but does we have political guts ?? who will bell cat ?????
By
shamsundar p gore, Dy manager/MMGS II/ SBI LCPC
| 11 01 2008 18:25:09 +0000
I am supporting Suhas but not rejecting MOhit's argument. The difference appears to be that Mohit's argument looks at investors who take advantage of cheap funds. There are others with money and my view is that these people/organisations/countries! should consider India as the most favoured destination for investment. Extending this, my view is that Indians should also take an exposure at present. Perhaps, Indian mutual funds should take the first exposure. after all, it is this channel which is the front end of an uninformed investor! Both of you are in two different banks and there are many others. What is your view?
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 09 26 2008 13:50:17 +0000
The effect of the crisis in the United States could favor Asia because previously investors favored developed economies like the United States despite
the fact that interest rates on investment instruments like treasury
bills and bonds were lower there than in emerging economies. Therefore
the crisis could in fact lead to a change in the mindset of foreign
investors in favor of emerging economies and thereby investors would
see the benefits of doing more business in Asia.
By
Suhas Deshmukh, Client Servicing/Key Account Manager, ICICI Bank
| 09 22 2008 08:23:21 +0000
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Decoupling of Economy and having a truly independent country is a dream come true for Asia but it wont happen ever. We are in the era where business requires expansion beyond boundries and we cant say that Asia will shine unless there is a comfort from West.
By
Kaushal , Sales/BD Manager, Kotak Life Insurance
| 02 15 2009 13:46:24 +0000
The Crisis is intertwained and asia cannot be said to be insulated?
Any wrong doing in U.S Markets and Europe would adversely affect the asian markets since
- Asian markets have unregulated FII exposure in the Markets.,
- Some of Asian Markets including India have PN participation where in the source is not declared hence the risk of " Pull Out " in cases of crisis in U.S and european market is very obvious.
- There are no govering body in the universal capacity to control the flow of funds between the countries on the stock exchages, this would hamper the markets whenever the pull out happens and money is siphoned off scientifically.,
- Further the individual markets are controlled by emotional and sentiments rather than acutal facts which further detoriates the exposure level of FII's.
By
Ganesh Ramaswamy, Area Sales Manager - Mortgages, Bajaj Finance Limited
| 01 25 2009 08:03:13 +0000
Why are we looking at the developed-developing country scenario at all? We should look at where world money would go? In my view, destination for world money now is safest in India! World money should come here... Earlier, world money used to get lodged at the US. We were conducting all transactions in relation to the USD. But would this go on for ever? I have my own doubts.. The best destination for investment is India now. The best domestic consumption market is India now. The best manpower source is in India now. The best growth rate in the world is seen in India at present. A safe banking system exists in India now. If India is not yet a developed country, it will become and has the potential. If only our banking brains, all MBAs who have best credentials academically and who perhaps need to think more out of the book, and those who control investment surplus; recognise the above, we shall reach there sooner!!
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 12 15 2008 08:37:37 +0000
No, not at all as of now as companies are experiencing declining revenues,
tightening their belts and laying off workers. Even companies that have
the money are reluctant to spend it as economies are sinking deeper
into recession. The losses at banks are increasing. I don't think
people really know what's next. It depends on sentiment, which will in
turn drive credit markets, which in turn will weigh on banks.....
By
Pankaj Gautam, Client Servicing/Key Account Manager, ICICI Bank
| 12 04 2008 12:10:06 +0000
In my opinion it's not an Asia's gain because current market suggest that lending has tightened around the world as Western banks stagger under the weight of billions of dollars in bad loans and mortgages that have accumulated from the wave of US home foreclosures.
By
Mohit Sethi, Account Manager, ABN Amro
| 09 22 2008 07:54:25 +0000
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