Inflation affects on NRI & Retail investment in Stock Markets of India?


In the vague of global crisis and added commodity index uptrend, there is a very less choice left in the hands of a common person when it comes to returns on his Indian investments. The question is whether the investor can reap out some returns or would lose his equity in the market. These questions have been killing us in the past few months, wherein we are unable to predict the trend of the market.

Rising gas prices, commodity upsurge, inflationary pressure and geo-political tension in gulf has added a fuel to the global turmoil by depreciating the common mans interest and confidence in the local capital markets. This is just not the end, as we see more and more banks & financial institutions getting bust, the entire faith in the financial markets is getting reduced from the investor’s point of view.

The good news is that the US has come up with $700 bn bailout plan, that focuses on providing liquidity to the capital markets by buying back NPAs – non performing assets from the financial giants, thus providing them abundant cash to properly meet their debts & risks at time. This would certainly add as a catalyst to the global economic growth, and lot of analysts believe that we might see a bull run coming into the markets in a few months time. On this note lot of economists and analysts are advising their clients to start investing, as they see the market bottoming out at these current levels.

One should have a proper investing plan and must diversify his investments into Indian mutual funds and direct stocks in a proper well balanced ratio. Today is the time to start investing not only into stocks but also to invest into top mutual funds of India, with a calculated approach where one can buy into some good funds with proper analysis and research. The investment can make some returns over a period of 3-5 years, but the investment view should be of long term and not short term.

Proper advising should be taken incase an NRI – non resident Indian intends to invest in India, as the investment opportunities are quite abundant here, thus proper financial advise is of utmost importance, if someone wants to make money in the Indian stock market.

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