In an effort to control the surging inflation, the Reserve bank
of India (RBI) increased the interest rates. This created a tense
situation for the Indian Stock Market as it plummeted by over
600 points.
Though, the market shown a quick recovery but scared the investors
about future prospects. However, it is certainly a time to make
killing for long term investors. Taking an intelligent move are
Non Resident Indians (NRIs) who are believed to have invested
a handsome investment of Rs. 1 crore in just two months of February
and March. Earlier, high rupee-dollar rate and other valuation
concerns were putting off NRI investments.
But, they returned back as the Indian market witnesses corrections.
It was an entirely different situation when the rupee appreciated
and the market was at a new high. Encouraged by the new developments,
NRIs are being bullish on scouting the ways to enter into the
market again.
The mutual fund has also eased off thereby offering lucrative
investment options for investors. Portfolio investments by corporates,
foreign institutional investors (FII) as well as NRIs marked $6.8
billion in the period from April 2006 to January 2007. Mass Exodus
from the market does not seem to be any possibility in the near
future due to strong basic economic fundamentals and economy is
still likely to grow by 7-8%.
The increasing interest rates will certainly cool down the overheated
Indian Economy. NRIs should not hurry off the things as the market
can go down further. Since, no one can forecast the future, entering
the equity market seem to be the best possible approach. Also
the NRIs looking forward to make hard cash on their investments
should consider buying properties in India. Many NRIs could not
turn their dream of buying a home in India into reality because
of various reasons.
Now, NRIs have again got a chance to fulfill their desire by
monitoring the easing of prices. As such, Gulf NRIs seem to be
benefiting the most as they are always seen to be overpowered
by the craze to invest in real estate. Since they prefer Tier
Two or even smaller townships and villages, they benefit the most
from lower housing prices. With interest rates hitting the sky,
it is the best time for NRIs to wait and watch their investments
to reap the best returns.
