There are two developments which may effect the Indian stock market on 17 th October 2007.
Firstly official from the Ministry of Finance said that the recent inflow of foreign money into our market is due to "Inflows are high as foreign institutional investors find Indian shares attractive" and "It is also because of the interest rate differentials". Link: News.
This is a statement made to control the damage from the statement made by Finance Minister Mr. P. Chidambaram. Link: News, earlier post.
And secondly SEBI is trying to control of Participatory Note participation in our market. The P-note is a derivative product used by overseas operators to protect their identity and the ease of entering and existing any market. Mostly the P-note is used for short term investment in market.
Read SEBI's Paper on the P-note here.
Many pundits beleive that the recent bull run of our market is also fuelled by the P-note phenomena to some extend.
We should be prepared to any kind of market reaction for both the above developments.
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