Tuesday, June 5, 2012

Indian markets losing currency among investors

Now, data relating to equities and currencies shows the country's financial markets too are being exported as investors increasingly trade in Indian assets in overseas markets against the backdrop of retrospective taxation measures, policy paralysis and uncertainty.

Since April this year, a little after Pranab Mukherjee unveiled his budget that proposed a raft of tax measures, including retrospectively taxing indirect transfers, trading volumes in American Depositary Receipts (ADRs), which represent stocks of some of India's top companies such as Infosys, HDFC Bank and Dr Reddy's Laboratories (DRL), have spurted and in some cases are higher than volumes of such stocks on Indian exchanges. 

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