Financial/business experts and watchdogs are paying close attention to the Sensex?s rise and fall, and whether P-notes brought in by the FIIs will be allowed to come in without any restrictions, scrutiny and control (?Sebi allays FII concerns?, Oct 23). But their major cause of worry should be the crude oil breaching $90 per barrel in the international market and its impact on India?s economy. FIIs are mainly investing in secondary markets and this investment does not in any way contribute to vital infrastructure growth or investment in new projects. Secondary market investment is purely speculative in nature. We must take steps to prevent money laundering through the PN or any other route even if it leads to a fall in Sensex. Meanwhile, India?s oil subsidy bill is ballooning to unsustainable levels, and isn?t this calls out for more urgent attention of the government?
?Sudhir K Bhave
Bargain hunt
Regarding your editorial (?Bargain time?, Oct 20), it can’t be gainsaid that there is plenty of surplus money available for investment in the market. For example, the reserves with the public sector undertakings is over Rs 2.5 trillion, and the top five portfolio management services have about Rs 50,000 crores with them. Moreover, India?s economy is moving forward with strong fundamentals. Hence there is a good opportunity at present, when the stock market has witnessed a slide, to do some bargain buying.
?RN Lakhotia, New Delhi