![]() Representatives from banks said they would not risk investing in stocks any further in a stagnant market. Lower profits resulted in lower dividends to shareholders. These investments were actually from deposits in banks. ![]() The other day a national daily reported on how illiquid investments in securities have been eating into banks' profits. What is more damaging is that such sentiment will only spread and intensify with time across the class of investors. And, they have developed a pessimistic sentiment about the market. Exposures to such scenarios, I am sure, have changed investors' perceptions of the value of their assets that they see on paper. Or, they might have had to shelve plans for which they were expecting funds from the stock market. Or, they could not sell assets in an emergency. Investors might have failed to grab lucrative investment opportunities had they come across any. The assets, which they wanted to see not going below a certain value, have remained illiquid, preventing them from encashing those. During this time, investors have navigated various economic challenges. ![]() More than a year has gone by since the re-imposition of floor price on stocks. It has to be usable, transferable, and worthy to be benefited from. In the beginning, they might have felt that their investment would not deplete, but assets are not just numbers on paper. Whatever faith investors had in the market before the imposition of the floor price is now more or less diminished. For all latest news, follow The Financial Express Google News channel. ![]()
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