last leg of market rally?
In the final phase of the market rally, in the Indian markets the non banking finance company (NBFC) stocks rise, as market players buy into them as they struggle to justify valuations elsewhere. Goldman Sacs has bought into Reliance Capital, Cholamandalam finance is on the rise, First Leasing has spurted and a bevy of venture capitalists and investors have lined up to invest in the Shriram group.
This, i believe, means that the market will take a final heave before a significant fall.
ps: i do believe NBFC s, which is essentially a terminology for finance firms which donot accept demand deposits, have some great business and offer tremendous value. HDFC and Goldman Sacs are NBFCs! But for the Indian market to value them decently they have to attached a "bank" in their surname as Kotak mahindra did or see some further financial reform.
This, i believe, means that the market will take a final heave before a significant fall.
ps: i do believe NBFC s, which is essentially a terminology for finance firms which donot accept demand deposits, have some great business and offer tremendous value. HDFC and Goldman Sacs are NBFCs! But for the Indian market to value them decently they have to attached a "bank" in their surname as Kotak mahindra did or see some further financial reform.
posted by tvm at 1:43 PM
2 Comments:
mr a, nbfc do accept deposits that for duration more than a year, they are only not allowed to give interest beyond the ceiling fixed by the regulator
hey,
sorry, i meant demand deposits. will change iit. thanks!
tvm
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