{"id":180,"date":"2007-10-18T15:28:53","date_gmt":"2007-10-18T15:28:53","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/uncategorized\/volatility-sweeps-indian-markets\/"},"modified":"2007-10-18T15:28:53","modified_gmt":"2007-10-18T15:28:53","slug":"volatility-sweeps-indian-markets","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2007\/10\/18\/volatility-sweeps-indian-markets\/","title":{"rendered":"Volatility sweeps Indian markets"},"content":{"rendered":"\n\n
\n
\"Indian<\/p>\n
Traders have endured a rollercoaster ride in recent days<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/table>\n

Indian stock markets have suffered fresh volatility amid concerns about plans to curb the flow of foreign investment in shares.<\/strong>India’s main share index, the Sensex, closed down nearly 4% on Thursday, having initially risen to a new all-time high above 19,000.<\/p>\n

The index fell 9% at one point on Wednesday on worries about government efforts to contain the rising market.<\/p>\n

Ministers said there was no cause for panic but traders warned of turbulence. <\/p>\n

The benchmark Sensex index of leading companies closed down 717.43 points or 3.8% at 17,998.39 on Thursday, having earlier risen as much as 2%.<\/p>\n

This fall came on top of Wednesday’s eventual 1.8% decline in share values.<\/p>\n

‘Panic’<\/strong><\/p>\n

“Investors panicked due to the regulatory proposal,” said Apurva Shah, a equity market strategist from Prabhudas Lilladher.<\/p>\n

“We expect sharp volatility in coming days.”<\/p>\n

Wednesday’s fall came after the stock market regulator proposed urgent curbs on the flow of foreign funds into shares, in order to stop the market overheating.<\/p>\n

<\/p>\n\n\n
\n
\"Indian<\/p>\n
Indian ministers have sought to reassure the markets<\/div>\n<\/div>\n<\/td>\n<\/tr>\n<\/table>\n

<\/p>\n

The regulator’s recommendation relates to participatory notes – a form of investment used by hedge funds and other foreign investors who are not registered in India.<\/p>\n

Analysts say the proposal may be aimed at countering a surge in foreign money that has caused Indian share prices to rise sharply – worrying some policy makers about its potential impact on the broader economy.<\/p>\n

There is also a concern that because much of the investment is coming from unregistered firms, those investors could easily pull out, damaging the markets.<\/p>\n

‘Investment welcome’<\/strong><\/p>\n

Finance minister P Chidambaram said that foreign investment was still welcome and that a ban on the notes was not intended.<\/p>\n

“But presently it is important to moderate capital flows, which are getting very copious and abundant,” he said.<\/p>\n

Some market experts have backed the government’s move, arguing that current share levels are inflated.<\/p>\n

“If they hadn’t taken this step, the whole market would have imploded,” said R.H.Patil, a former managing director of the National Stock Exchange.<\/p>\n

“The present levels are totally unrealistic.”<\/p>\n

India is seen by many investors as one of the safest havens among the emerging markets as investors try to tap into one of the world’s best-performing economies.<\/p>\n

The rupee has risen more than 11% against the US dollar since the start of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Traders have endured a rollercoaster ride in recent days Indian stock markets have suffered fresh volatility amid concerns about plans<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[32,48],"tags":[],"class_list":["post-180","post","type-post","status-publish","format-standard","hentry","category-markets","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=180"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/180\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}