The Hindu : Business : Strong rupee buoys market

Online edition of India's National Newspaper
Thursday, Jul 19, 2007
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Business

Strong rupee buoys market

S. Varadharajan

CHENNAI: The strong rupee, continued growth in gross domestic product (GDP) and the low inflation rate were some reasons for the buoyancy in Indian stock markets, according to P. N. Vijay, a leading portfolio manager and investment consultant. He was addressing an investor camp in Chennai on Saturday, powered by CNBC-TV18, a leading business channel, along with Moneycontrol.com (financial portal) and Angel Broking.

Mr. Vijay said whenever rupee appreciated the Indian stock markets moved up even though information technology and export-oriented companies were affected.

The growth in the agriculture, manufacturing and infrastructure sectors and the low tax regime have created confidence among retail and foreign institutional investors (FIIs), he said. However there were concerns such as high valuation, with a price-earning ratio of 17 plus, which might cap upside growth, he said.

Using the current buoyant trend a lot of initial public offerings (IPO) are tapping the market. He expressed concern over the aggressive pricing of IPOs by some merchant bankers and lead managers.

Investment experts R Sukumar (Franklin Templeton), P. Phani Sekhar, Fund Manager, Angel Broking Ltd and Sudarshan Sukhani , Technical Analyst, shared intricacies of investing and capitalising on current market opportunities. Udayan Mukherjee, Stock Markets Editor, CNBC TV 18, said “ While investing in share market one has to be very cautious. The CNBC-TV18 investor camp is aimed at educating the investors about various investment strategies available to them and answer queries related to life after 15K and entry and exits.”

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