What impact would disinvestment of the non-navratna PSUs have on the stock market?
It goes against conventional logic of demand and supply of stock. At the same time, what we notice is that when there is a build up of institutional ownership in a market, they (the investors) like a certain supply of a stock. Actually more capital is attracted because the size of the market, the width and the ability to participate, rises. When Maruti listed, it actually got people looking at the auto sector in India and they started looking at other companies. It actually ignites interest. So it is good. In a bull market, it is good. In a bear market it becomes a problem. We have a large number of IPOs in the pipeline so some of the flows could just be adjusted in the IPOs and may not have as much of an impact on the market. So, we need some amount of flows just to keep the market where it is right now. It is good that they (the IPOs) would attract capital but they will also absorb a lot of that capital. HSBC Midcap has a restriction on the fund size. Is there an optimum size for mid
