'Small investors must be careful in stock market'
New
Delhi,
Oct
3:
With
the
Stock
market
index
touching
new
peaks
every
day,
Finance
Minister
P
Chidambaram
today
sounded
a
note
of
caution
to
retail
investors
to
be
careful
before
putting
in
their
money
into
the
bourses.
"I do not think retail investors are entering the market at this level. I would advise them caution," Mr Chidambaram told reporters here.
The Finance Minister, however, welcomed the interest being shown by Foreign Institutional Investors(FIIs) in the Indian stock markets.
"There is apparently a lot of interest from foreign institutional investors. Why should we not welcome it," he said.
The BSE Sensex is now hovering around the 18,000 mark and has recorded the most handsome gains in recent days. .
An important reason for the FII interest in the Indian stock markets is the repeated cuts in interest rates by the US Treasury following signals of a slow down in the world's largest economy, Their net investments in Indian bourses stood at Rs 19,625.3 crore in September alone.
The Finance Minister also said that in the event of RBI approaching the government, the Finance Ministry would review the ceiling on Market Stabilisation Scheme Bonds, a mechanism to drives out liquidity which flows into the market because of the RBI intervention in the forex market.
UNI