SURAT, July 26: Foreign direct investment has risen considerably in June, nearly two times more than the investment in May, when India went nuclear, and half of it has come from the US, said share market expert Fakhri Saboowala suggesting that the capital market was on the path of recovery.While delivering a lecture on `Trends in the Capital Market', organised by The Financial Express (Gujarati), an Indian Express group publication at the Surat People's Bank hall here on Saturday, he said, in their first quarterly results as many as 73 companies had shown profits.Comparing the stock markets to the night, he said they were passing through the darkest phase of the night and predicted that better days were head. Political uncertainty fuelled by the ruling Bharatiya Janata Party's coalition partners, especially the tantrums thrown by Jayalalitha, was taking its toll on the market, he said.When economies in the region were collapsing and indices in global stock markets plummeting, the country, unlike earlier days, could not be expected to remain immune. The world economies were interlinked and same Foreign institution investors were main players.He advised investors to keep themselves abreast of developments taking around the world. The fast spread of news and information was having a cascading effect across the globe, he pointed out, asking investors and brokers to do their own research to know the trends.He advised investors to look for companies which are immune to recessionary trends.He predicted a good market for software and hardware companies. He saw little in the widely expected announcement on buy back of shares. Admitting that he was not aware of the nitty gritty of the scheme, he said companies could manipulate results to buy back shares at a lower price.According to him, the dematerialisation conversion of physical stocks into electronic form of stocks is here to stay for it facilitated easy delivery. The process was not cumbersome and hence better for the investor community, he stated.
