India opens stock markets to foreigners
India opened its stock markets to investments from foreign individuals in a bid to generate inflows.
India will open its stock market to individual foreign investors this month, in a move designed to boost demand and liquidity, the BBC reports.
Previously, foreign investors could only trade in Indian stocks through investing in mutual funds.
Before you get too excited, bear in mind that the Sensex dropped about 25 percent last year, marking its first annual drop in three years.
Moreover, various analysts suggest that the short-term outlook is bleak, though Mark Mobius, for one, says India and Asia in general present good prospects within a five-year window.
Perhaps the biggest risk is a pullout of European capital, as loans from Eurozone banks reportedly account for as much as 15 percent of India's GDP, according to today's Indian Express.
The story you just read is available for free because thousands of listeners and readers like you generously support our nonprofit newsroom. Every day, reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you: We need your support to ensure we can continue this work for another year.
Make a gift today, and you’ll get us one step closer to our goal of raising $25,000 by June 14. We need your help now more than ever!