Our current stock market is a study in contrasts and contradictions. As a nation we save around 34 per cent of our disposable income — much more than most of the developing economies except Malaysia that has a comparable rate and China where the aggregate marginal propensity to save exceeds 50 per cent. The European Union has a rate that hovers around 11 per cent. The savings rate of the UK is only two per cent. But despite our high savings rate, which is contributed largely by the household sector, only half of it goes into financial savings like cash, bank deposits, small savings, provident and pension funds, LIC and private sector insurance premium. Only a minuscule part of it goes in shares and debentures and the other half into physical assets like gold and land.

<p><table width='100%' border=0 cellspacing=0><tr><td style='FONT-FAMILY: Arial; FONT-SIZE: 18px; FONT-WEIGHT: bold; COLOR: #0253B7;'><B>Pratip Kar:</B> Fault lines in the Indian IPO market</td></tr><tr><tr><td style='FONT-FAMILY: Arial; FONT-SIZE: 11px; '>We need to build the household sector

Pratip Kar: Fault lines in the Indian IPO market

We need to build the household sectors confidence in the stock market

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