India set to curry foreign favours

Indian Prime Minister: Manmohan Singh

Indian Prime Minister: Manmohan Singh

India will this month open its stock market to foreign investors in a bid to attract more funds and reduce volatility.

The government said individual foreign nationals will be able to invest directly in Indian shares from January 15 following a year of heavy losses on the benchmark Sensex index.

Until now, foreigners have only been allowed to invest in the country’s stock market indirectly through mutual funds.

But the government wants to attract new investment as the economy slows.

The Sensex fell more than 22 per cent in 2011, making it one of the worst performing in the region.

The rupee also lost about 14 per cent and recently hit an all-time low against the dollar.

 

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