To justify my Ultra-Bearish tone:
I just finished reading a book called "Panic" by Michael Lewis. In one of the chapters he talks about what happened to Thailand when FIIs exited... what mess they left behind. The currency devalued like crazy. The Gov was helpless.
These sequence of events are replaying in India. I suggest you read that book. Thai Govt. was helpless. It tried all tricks to attract FIIs, bring them back, didn't work. They eventually ended up reining its currency, Thai Baht, by increasing Rates and the economy didn't recover for years.
In late 1990s, India was still cautious and protective therefore FIIs did not enter into India majorly. So its first time for India. But the dominoes have started to fall. And they will fall hard... each and every one of them.
And God forbid with all that hue and cry about Modi. If an unstable govt comes then scenario will get even worse. Nobody will be safe. Not a single company will be left unshaken. Lower circuits will be a common sight.
I just finished reading a book called "Panic" by Michael Lewis. In one of the chapters he talks about what happened to Thailand when FIIs exited... what mess they left behind. The currency devalued like crazy. The Gov was helpless.
These sequence of events are replaying in India. I suggest you read that book. Thai Govt. was helpless. It tried all tricks to attract FIIs, bring them back, didn't work. They eventually ended up reining its currency, Thai Baht, by increasing Rates and the economy didn't recover for years.
In late 1990s, India was still cautious and protective therefore FIIs did not enter into India majorly. So its first time for India. But the dominoes have started to fall. And they will fall hard... each and every one of them.
And God forbid with all that hue and cry about Modi. If an unstable govt comes then scenario will get even worse. Nobody will be safe. Not a single company will be left unshaken. Lower circuits will be a common sight.