It is also a good time to focus on the Indian financial markets. Stock
in India seems to be well positioned to withstand the global credit crisis.
The Indian banks are much more stable and well cushioned than its
counterparts due to strict Government regulations which can be reflected in
high capital adequacy norms, lower leverage and relatively higher liquidity
reserve requirement. Thus, the financial sector would act as a catalyst and
be the major beneficiary of economic recovery, taking advantage of
aggressive cuts in key lending rates, decrease in bond yields and lower than
expected non performing assets.
India is only
looking up economically and politically. Although India is doing well in all
of these areas, Indian stocks & Mutual funds of India are having trouble. A
rupee is very low compared to a U.S. dollar. Therefore, stock exchanges in
India are doing poorly because of this. With all of this, as an individual,
when you invest in India, you will not be greatly affected by this.