Concept Consultants

In order to increase the capital inflows in Indian markets today SEBI chairman Mr. C. B. Bhave has announced changes in P-notes policy. SEBI today scraped a rule which allowed P-notes could only account for upto 40% of the value of assets foreign fund, he also said entire framework for FII participation needs to be reviewed.

As per Oct 2007 decision FII’s were expected to bring down total p-notes issuance to 40% of their total assets before march 2009. However Mr. Bhave himself told the reporters that FII issuance of P-notes has already come down substantially and thus today’s decision may not make any immediate difference to FII position.

Fundamental Analysis, Futures and Options Tips, Indian Market News, Stock Tips, news FII, P-notes, SEBI

There is strong market rumour going around suggesting that good FII buying can be expected from 1st week of January once the holidays are over. One of the leading brokers has said that, “All the Hedge funds who booked profits in December due to year end closing, are likely to buy back in January”.

Rally is expected in the large cap Nifty stocks. The same broker suggested that traders who wish to take benefit of this upmove should start buying now when the markets are weak to get the maximum benefits of the upside.

Market Gossip FII, Nifty, Stock Market