Most analysts feel that liberalization of the FDI policy will help boost the Indian economy to a greater extent. In an interview on CNBC-TV18, Todd Martin, Asia Equity Strategist at Societe Generale said that he is slightly overweight on India despite expensive valuations.
In an interview on CNBC-TV18, Robert Parker of Credit Suisse said that the global market will remain volatile for a while; however, it will mark growth in the second half of the calendar year. He seemed more concerned on the Japan crisis. “Nuclear problem in Japan will dominate markets,” he said.
Finance Minister Pranab Mukherjee said that he is watching West Asia situations closely in order to take apt steps with an aim to keep a track on hiking energy prices.
The global and domestic car industry has been deeply impacted by the Japan crisis. Reacting on a concern whether the Indian auto plants in Japan are safe or not, RC Bhargava, chairman of Maruti Suzuki told CNBC-TV18's Soniya Shenoy that its Japan plant is safe and will resume production from tomorrow onwards.
Dhiraj Agarwal, Director, Institutional Equities at Standard Chartered Capital Markets, in an interview with CNBC-TV18's Mitali Mukherjee and Sonia Shenoy spoke about his reading of the market and where he sees it headed in the coming weeks on the back of global newsflow.
The Japanese government plans to inject public funds into banks in areas ravaged by the March 11 earthquake and tsunami to make sure that businesses in the area can get credit to rebuild their operations, The Nikkei newspaper said in its Sunday edition.
The Reserve Bank of India hiked key policy rates by 25 basis points in a bid to keep a tab on rising inflation. Most analysts expected a similar result from the policy including Chief Economic Adviser Kaushik Basu.
Rising crude oil prices, sovereign debt issues in Europe, problems in the Middle East, and the latest earthquake and nuclear destruction in Japan, all are worrisome developments and would impact the global economy that is just coming out of the worst recession since 1930s, says Stephen Roach of Morgan Stanley.
Global worries haven't been able to buckle down the Indian market till now. "This gives some sort of a confidence that probably the bottom that we saw in the last few months is the bottom for now," says Nandan Chakraborty of Enam. The indices will be range-bound in the next couple of months, according to him.
Domestic market is dealing with a new challenge on the back of the Japan crisis. Japan’s benchmark index Nikkei has dropped almost 10%, creating tremendous pressure on its Asian peers. Meanwhile, concerns over crude have taken a backseat for a while as crude rates have slipped to almost 2%-3% per barrel.
Indian equity benchmarks fell around 1.5% on Tuesday, but were still among the least affected markets on a day when there was panic selling across. News of an unfolding nuclear disaster in Japan sparked a sell-off all the way from Asia to Europe, with experts saying the slide was more sentiment-led rather than genuine selling.
At a time when Tokyo is struggling to curb its huge debt, the earthquake, tsunami and now the nuclear meltdown is sure to hurt Japan's economy in a big way. Nouriel Roubini of Roubini Global Economics feels that given the amount of uncertainty, people fear the worse.
General Electric's chairman and chief executive officer Jeff Immelt said it was too early to know what impact the nuclear power crisis in Japan would have on the nuclear power industry.