The fear narrative continues to be recited by Indian investors even as select corporates are forced to work overtime to counter rumor mills. The recent CBI arrests in the telecom probe seem to be making matters worse for the bourses. The Anil Dhirubhai Ambani group was yet again a victim of what the group termed as ‘completely baseless and motivated rumors spread by unscrupulous corporate rivals.’ Whatever the truth, the group saw an erosion in its market cap with its listed entities sliding anywhere between 8-18%.
The start today is set to be in the red. The global markets have no ray of hope with the US indices ending flat; nevertheless the Dow did manage to stage an eighth straight day of gains.
The upcoming Finance Bill will have to factor in a confluence of events – domestic and global. The pick up in American economy seems to have prompted the earlier theory that a flight of capital will take place for lucrative returns back home in the US. These are opportunities for investors to take some calculated risks on large-caps.
