Everybody thinks that interest rate will go down from here onwards or at best remain- at current levels.
There is low probability that government securities will touch 9%. But reasonably high probability that either it is going to remain like this or maybe marginally come down.
Tax free bonds are at 6.5%.
Unless there is a crisis globally, gold doesn’t go up.
One year bank fixed deposits are also not going up because credit is not picking up.
The mind is still anchored to 8%.
Then you have properties which is not giving you any return for very long time now.
If you have money where do you invest is the question?
And which is why this flow is happening into equities
–said Anup Bagchi, MD, ICICI Securities