P.Chidambaram advised to retail investors

Finance Minister P Chidambaram has advised retail investors in the stock market to exercise caution as the benchmark index nears the 18,000 levels.
"I do not think retail investors are entering the market at this level. I would advise them caution," he said. The Sensex went up to 17,953.07 points in intra-day deals on Wednesday.
With US Federal Reserve cutting interest rates amid concerns over slowdown in the world's largest economy, the FIIs are finding Indian stock markets quite attractive.
Their net investments in local bourses stood at Rs 19,625.3 crore in September.
He further added that in case RBI approached the government, it would review ceiling on Market Stabilisation Scheme Bonds, a mechanism to suck out liquidity, which flows into the market because of the RBI intervention in the forex market.
MSS Bonds' ceiling is Rs 1,50,000 crore per annum. Out of this, government has sucked out liquidity of Rs 1,42,000 crore so far this year.



Courtesy:NDTV

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