Marc Faber, the investment guru, is of the opinion that the Fed’s interest rate cut is feeding the stock market bubble. He said that this year’s rally in Chinese assets will end by the August 2008, start of the Olympic Games in Beijing and that India’s stock market gains will end by the same time.

Jim Rogers, who predicted the start of the global commodities rally in 1999, while speaking at an investors’ meeting organized by ABN Amro Markets in Amsterdam, said he expects the Chinese currency to quadruple in the next decade and that he is holding on to commodities such as platinum, gold, silver and palladium. He said that he is shifting all his assets out of the dollar and buying Chinese yuan because the Federal Reserve has eroded the value of the US currency.

Fed’s interest cut helps feed the stock market bubble: Marc Faber
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Source: Livemint.com

Jim Rogers shifts assets out of dollar to buy Chinese yuan
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Source: Livemint.com

As per the data provided by the Securities and Exchange Board of India, or SEBI, overseas investors have bought $8.2 billion more of Indian stocks than they sold since the Fed’s decision, compared with $1.4 billion in the preceding month. The regulator proposed tightening rules for the purchase of shares and bonds through offshore derivative instruments, such as participatory notes. SEBI has released its report on P-Notes, or participatory notes. It suggests that FIIs should not renew or issue PNs with underlying as derivatives. It also wants sub-accounts to not issue PNs.

Experts believe that the controls are unlikely to succeed in reducing capital inflows to the desired extent and may discourage some overseas investors.

Will the markets resume their bull-run or has the bubble burst?
No-one really knows for sure.

No proposal to ban P-Notes: Damodaran
Excerpts from CNBC-TV18’s exclusive interview with M Damodaran:
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Source: Moneycontrol.com

Bombay Bungle
There are few things that stock investors hate more than an unpredictable regulator. India’s Securities and Exchange Board is not only that, but something …
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Source: Wall Street Journal

India Seeks to Reduce Fund Flows, Chidambaram Says (Update2)
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Source: Bloomberg.com

India’s volatile stock market
By Paranjoy Guha Thakurta
When Indian Finance Minister Palaniappan Chidambaram said on Wednesday that there was a need to moderate capital inflows into the …
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Source: BBC News

FII mood still the same post PN draft: Raghav Bahl
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Source: Moneycontrol.com

Unregulated foreign fund flow hurting economy: HDFC
Deepak Parekh, Chairman, HDFC said that unregulated foreign fund flows are hurting the economy.
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Source: Moneycontrol.com

Investors should be prepared to invest long term: Mark Mobius
Investment guru Mark Mobius tells Business Standard about his investment philosophy and views on emerging markets and advises investors to think long term. Excerpts from an email interview:
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Source: Business Standard

Experts’ take on market crash
Mihir Doshi, Country Head, Credit Suisse
Rajeev Malik, VP & SR Economist, JP Morgan Chase Bank, Singapore
Siddharth Shah, Head of Funds Practice Group, Nishith Desai Asso
Uday Kotak, VC & MD, Kotak Mahindra Bank
R Ravimohan, MD & Regional Head, S&P South Asia

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Source: The Economic Times

Panic Notes in markets
Experts’ Views:
Adrian Mowat, Chief Asian and emerging equity strategist, JP Morgan
Bhanu Baweja, Global head of emerging markets strategy, UBS
Sanjay Sachdev, Country manager, Shinsei bank
Anil Singhvi, Partner, Notz Stucki
Alok Sama, Founder and President, Baer Capital Partners.
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Source: Business Standard