At ThePrint’s Off The Cuff, Ashish Chauhan plays down tax fears spooking FPIs, warns against stock tips, flags cyber threats, & explains why NSE listing remains work in progress.
March has been a good month for equity & currency, backed by FPI inflows & weak dollar. Going forward, tariffs, Chinese markets, oil prices & corporate earnings may have a role to play.
Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.
While bank credit looks healthy, there are signs of stress. Pvt investments show green shoots but merchandise exports are contracting. Foreign investors continue to find India attractive.
Overseas ownership of Indian govt & sovereign bonds has fallen to record lows. FPIs have utilised less than 25% of their investment limit in govt bonds & just 17% in corporate bonds.
A group of ministers is likely to meet on 4-5 March to decide whether the govt should go ahead with the IPO, as foreign portfolio investors could be key to its success.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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