Indian households, Desai wrote, are still under-invested in equities. At cost, only 3 per cent of the household balance sheet is in equities, excluding equity holdings of founders.
The YTM of most debt funds tops 6.5%, indicating that they can at least do better than FDs in the near future
Indian markets on Thursday recorded new highs with the Sensex consolidating above the 35,000-mark and the 50-share Nifty for the first time closing above 8,500. Banking shares led the gains for a second day, this time on hopes that the government would raise the foreign direct investment (FDI) ceiling for the sector to 100 per cent. A day earlier, they had jumped after the centre announced a cut in additional borrowing to Rs 200 billion. After rallying as much as 425 points, the Sensex settled 178.5 points, or 0.5 per cent higher at 35,260, Nifty closed at 10,817, up 28.5 points or 0.26 per cent. The market came off from their highs as some investors booked profits judging recent gains as excessive, said experts. The broader market in fact saw widespread losses. The BSE Mid-and Small-cap indices fell 1.6 per cent and two per cent, respectively. Overall breadth of the market also remained negative with over three shares declining for every one advancing.HDFC Bank, HDFC, Kotak Mahindra .