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hmm long time since i posted the analysis of indian share markets particularly benchmark indices like 30 share index SENSEX and NSE's NIFTY,
Have anyone noticed the trends of growth of indian share markets especially BSE's SENSEX??
i was noticing the trend this time(when US Stocks are reeling under reign of bears from last one year (oficially..) the reason for growth of BSE SENSEX this time(at the levels of 16700..presently) is cent percent indian ie this time indian stock markets have increased because of pure indian investor's.
ok let me explain this with respect to FDI's last time when indian share markets were hovering at 16000 levels the conversion price of US $ was at 45 IN|R for one US $ (if i am not wrong) and when SENSEX touched the 21000 levels US $ was at 39 INR/$ which clearly depicts that previous year's stock rally was due to increased Foreign direct investments in indian businesses and Stocks how ever this is not the case this time around
I may also strengthen this by comparing the US $ price wrto INR this time, SENSEX has crossed 16700 levels but still US $ is hovering about 48.48INR/$ so indian investors have invested a lot of their hard earned money into indian share markets this time around and that too from long term investment point of view may be investor's are waiting for the time when US institutional investors would come back to indian markets and this would be time when indian investor's would sell off their shares and earned huge profits from it. and if US$ starts weakening then it is clear indicaion about foreign currency flowing into indian markets.
So long term investor's can buy realty stocks, IT stocks or banking stocks and may sell them when FDI starts coming into BSE SENSEX or NIFTY or any other regional stock markets of india. and according to my prediction indian markets will touch new highs when US $ would come again at INR40 levels.
