The Current step (By cutting in CRR ) taken by the MOF, RBI and SEBI will going to improve the sentiment of small Investors (who are the one of the main pillar of Economy)?
Our answer is that 'Obliviously not', the main cause of current problems are not due to the liquidity crunch, but it is a system failure, which decide the fair value of Stock price in lieu with economy parameter, and currently the trading activities of Stock Exchanges are in the hand of Market Manipulators because the norms of regulator are improper and they are using the same to manipulate the market, and regulator doesn't find any irregularities in market.
The best solution for current situation is that MOF has to Make the 'Investor Sentiment Fund', this Fund will be finance by RBI, and the act of this funds to support the NIFTY and SENSEX scrip to stop the further fall by buying aggressively in the last hour of Market and maintain the market at the bottom price level, which prevent the market from manipulations and whenever the market will go 15 % up immediately sell the purchased stocks and again wait for Bottom level to support the market. After the Five to seven Cycle the Investor confidence level will improve and the market come out from Panic.
This should be done up to the Total Market Capitalization reaches to the 90% of GDP of Economy.
of just10 Billions USD (around 44,000 Crores) by FII in 9 Months has not able
to shake the Investor confidence of the citizen of country whose GDP is 100
times higher of the Stock Sold by the FII, but the Manipulations and Miss
use of System by FII in conning with some media channel and some Local operators
is solely responsible for this situations. To punish them only such kind of
step will be require on urgent basis.