How will India’s rating affect stock investors
INTRODUCTION
A stock investor is an individual or firm who puts money to use by the purchase of
equity securities, offering potential profitable returns, as interest, income,
or appreciation in value (capital gains). This buy-and-hold long term strategy
is passive in nature, as opposed to speculation, which is typically active in
nature. Many stock speculators will trade bonds (and possibly other financial
assets) as well. Stock
speculation is a risky and complex occupation because the direction of the
markets are generally unpredictable and lack transparency, also financial regulators are sometimes unable to adequately detect,
prevent and re mediate irregularities committed by malicious listed companies or
other financial market participants. In addition, the financial markets are
usually subjected to speculation.
DISCUSSION
The Indian
government has approved 36 new infrastructure projects in a bid to give the
ailing economy a boost. Energy and transport projects worth £17.7billion have
just been given the go ahead by the Indian government including oil and gas
developments, transport links and new roads.
Finance Minister P
Chidambaram said that the government was sending a message that “the investment
cycle has restarted, and we are pushing it”.
This message could
not come soon enough. The Indian currency has dipped to an all-time low against
the dollar and the stock market is experiencing unattractive levels of
volatility. Pioneering emerging market investor Mark Mobius of Franklin
Templeton said that India needed urgent reform and a change to the government
administration to make business and investment more viable.
CONCLUSION
Hence India’s rating will affect stock investors because if the rating
is good then stock investors will gain more profit.
No comments:
Post a Comment