The Restriction On Short Selling In Europe Could Help The Indian Markets

by khalid on 04/10/2011 · 2 comments

The situation in Greece is getting worse and there is a complete collapse witnessed in the Europe. But there are feelings among some experts that the fall in the markets have come and gone. The Greece condition has affected overall sovereign yield across Europe which affected the cost of capital badly. That austerity affects unemployment and the actual side of the economy. The Hedge funds are extremely bad and short in these markets. The investors have been restricted to short only in Germany.

The Global hedge fund has moved over and has started shorting in the Asian markets heavily. This is a positive sign for the Indian markets as at one point the markets feared huge decline. The hedge funds are going to get squeezed out of these markets as long only start buying stocks over the coming days.

Some Experts feel that this could help the Asian Markets especially the Indian markets to gain and the loss could change into gain through this process. This news is overtly going to beat the expectations and the lows have already put in. This could be the up month for the equities if this trend continues. With this process Indian could turn out to be the outperforming market and India deserves to be an out performer as it gets better return on capital than the return on capital than the markets around the region. The valuations in the North Asia are relatively cheap and the performance in China, Korea, and Hong Kong could also improve.

Bell The Bull says Indian markets could see an uptrend due to the movement of Global Hedge Fund

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