Wednesday, July 8, 2009

Amazing that ...

... so many presumably sophisticated foreign institutional investors (net sellers of about half a billion Dollars over the last two days, only some of that short selling) seem to have been caught out by the disappointment over the Indian Government's budget. This has become an annual post budget phenomenon - even a casual observer of, and occasional participant in, the Indian stock market knows this and this time it was quite expected.
Several investors in such funds and international and Indian regulators should be asking questions of significant investors and the financial media about statements made and trading patterns leading to the budget announcement. Indeed, on the morning of the budget announcement we saw some usually bearish investors turn bullish suddenly - we should know why, shouldn't we?
It is also about time that the Indian Government sets up a platform where it coherently announces its economic and related policy approach to the financial community and the public at large with some regularity.

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