One of the biggest banes of the Indian stock market over the last many decades has been its major reliance on foreign money. Its ups-and-downs have been at the mercy of foreign capital, and the mood swings of the owners of that capital. There has just not been enough money domestic money in the equity markets to tilt that balance. Two pieces of good news however may now begin to remedy this.
The labour ministry has now allowed company run Provident Fund (PF) trusts to invest 5% to 15% of their incremental corpus in equity markets. Further, the Employees' Provident Fund Organisation (EPFO), which was earlier given the green signal for investing in equities, has now said that it will begin its investments from next month. It will start with 1% in July, and by the end of this financial year, will take it to 5% of its yearly investments. With the EPFO being one of the largest of its kind in the world, today's chart of the day shows just how big a role its funds could play in offering some stability to the Indian markets.
The labour ministry has now allowed company run Provident Fund (PF) trusts to invest 5% to 15% of their incremental corpus in equity markets. Further, the Employees' Provident Fund Organisation (EPFO), which was earlier given the green signal for investing in equities, has now said that it will begin its investments from next month. It will start with 1% in July, and by the end of this financial year, will take it to 5% of its yearly investments. With the EPFO being one of the largest of its kind in the world, today's chart of the day shows just how big a role its funds could play in offering some stability to the Indian markets.
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