Finance, Forex and Investments

When FII(related to capital market) remove all their money in a fortnight, what happened to Indian Economy?

Public Comments

1. u'd think that we'd be ruined... but not completely the public sector in India has a major share. so, even if FIIs pulled out (which they won't), the public sector would keep the eco running albeit a lot slower
2. It is like asking what happens if i am walking and suddenly a truck comes and bulldozes me. Such things should not be though as else u would only think of what happens if sky falls on me etc. Think of probablitites only.
3. sssssssssssiiiiiiiiiiiinnnnnnnnnnkkkkkkkk.
4. Is the valuation of the stock market at a correct level at present or is it overvalued. When i was selling stocks in India i was asking my investors to be cautious at 9500 levels [sensex] now it is over 14500. To an extent lower valutions may dilute the premium in the IPO segment and business may not want to invest in new projects etc. This correction today is probable profit booking. Only 1% or so of the indian population is directly involved in the stock market and as you know FII's go to markets which have very high upside potential. A high stock market also enables the govt to divest its equity and plough the funds into say infrastructure. But if the gains are through speculation and arbidrage by short term players we need to be more careful. At every price the market particiapants are convincing in their arguments that the stock market is resonable priced. As you know india is a strong domestic economy with a large debt market as well.