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    Friday, February 10, 2006 

    10000 and going strong…

    Now that the BSE is amoungst the select club of indices that have seen beyond the 10000 mark, the question is what next? There is optimism every where ppl have been heard saying next stop 12000, I hope that comes true soon, spclly with the budget promising to be pro-reform the bull run may continue.
    I’m no expert in stocks, I havent even invested into the market but its hard not to notice it. There was no better time to be an Indian and to be a Proud Indian, The stock market is just a reflection of those sentiments. The economy is booming India is set to overtake Chinas rate of GDP growth by 2015, double digit growth rates now seem to be a distinct possibility, ppl expect that abt the time 2025 – 2030 India will become the 3rd biggest economy of the world, overtaking Japan and leaving the European giants far behind.
    Slowly but surely the tiger is rising, beware dragon ur monopoly will soon be challenged.

    good time to sell ur stocks:P

    You've inspired me to have an opinion on something that doesn't affect me directly AT ALL !
    (selfish GD-PI success thing)...
    now let's search this blog-world for some readymade views...

    the uncurable cynic in me always tries to find out faults in everything

    sensex 10000 and beyond hits the front page but the fact that india has shown no improvement in Human Development Index rankings for the past few years doesn't.....indian market is competing with china ...true...but the indian planning commission sets its standards as bangladesh's when deciding how far it shoud reach in terms of HDI in the next few years....

    the sensex is only 30 shares...but economy of a country is not just money in the market...it's of the standard of living of the 1bn people...

    should we be happy if the rich get richer?

    I think we have all the right in the world to celebrate success at whatever level it comes. stock markets are a reflection of what ur economy is doing and what is expected out of it.
    without the rich getting richer, where will the investsments come from? w/o investments how will the situation of the poors improve? BTW its not as if no development is being done in the rural areas or for the poors, the the employment guarantee scheme (whatever may be its fiscal implications), pradhan mantri gramin sadak yojna etc, telecoms reaching the villages etc are all sign of developments, with better connectivity better infrastructure the rural farmer will obviously benefit, where will the money to drive these programs come for if the rich do not get richer?

    My 2 cents on the issue if you please :)

    Its true that the Sensex boom reflects well on India's claim to economic power but we must apprecaite the fact that most of this is fuelled by FII investments. Is it always wise to depend on foreign capital? What happens when the US Fed decides to raise interest rates and foreign capital flows out like it happened in late October-Nov. The main question is: is the boom sustainable?

    The reforms in India were a good step but policy reforms have not yet been properly implemented in various sectors like infrastructure, trade policy and the like. When ppl clamour as to why Walmart is being denied entry into India, is the govt necessarily being stupid by not allowing it entry? A balanced outlook is very much necessary and the govt still has a very big role to play in the Indian economy, contrary to what we believe.

    We may be the 4th largest economy in the world today on the basis of Purchasing Power Parity but where do we figure on the HDI, as rightly pointed out by Sandy? So, I guess the euphoria, if any, doesn't warrant much sense. Why did the BJP govt fall in spite of "India Shining"...was India really shining? Or is it today? Misplaced pride will not take us anywhere.

    hmmmm yeah i do agree with u on dis topic infact first of all i was schoked when i saw dis news on d TV bt really happy with market performance.
    N abt HDI n infrastructure yaar we need money to imporve the condition dats why we r follwing the open market strategy, when we started this that time BJP is d first one who is creating vandalism on d name of swadeshi . N i hope dose days r not dat far when we will imporve in HDI , infrasturcutre also :)

    agreed with most of things u said.. Sensex is just a reflection ..
    u can also look into the forex reserve .. another contentious issue... where to put a cap on the forex...

    Oh my god!! and i was searching internet for all of the economics data's!!! .
    Sensex!! 30 company index as well said by arnav do reflect a booming economy ( At least presumably booming economy ) as suvro mentioned all that money is from FII , but point is why they are investing in indian markets P/E ratio is close to 17 right now in india while in the south american markets its below 15 still FII's are investing in india the question is why?
    why they are investing?
    why japanease investors are finally coming to indian markets ?
    Reason is simple all these FII's are profit making organiazation what this Index atleast reflect is a promising economy ...And this sensex is just a refelection of that .

    HDI? we are comepeting with bangaladesh ?I Think this statement itself clarifies a lot about where we stand. Yes we do need to talk about HDI, Umemployment, Educaion,Health but its all about money honey .

    Again i just want to add if pharma share are booming doesn't mean any thing but shows that investors are having faith in indian pharma industry , So let's cheer about something which is going on a right path.

    Arnav:

    gud that we are having some sort of discussion here, acha time pass bhi (even thou i have lil time to pass today) + genral info...
    buddhe u r v rgt, this time the fundamental as they call it are strong, during the IT boom the P-E ratio had gone up to as high as 46, something was surely wrong somewhere, this time everything is v much under control.
    as for the FII hue and cry... the markets have been given a definite push by the huge inflows 10 b USD last yr, but that is only a part of the total market capitalization of the stock market shares.
    development doesnt see ask if its foreing money or indian money that is being put up, if its a loan or a grant or hard earned money that is being invested, as long as its being invested. and most of it doesnt even differentiate if the benfits will be shared more by the poor ir the rich.
    some more facts for u, its not as if nothing is being done, the % of ppl below poverty line has fell down 10% points from 36 % to 26% in the last 10 yrs... now is that not something to be happy abt, changes wont happen overnite, the effort thou cannot be denied
    take the case of the the recent ET-500 list (the desi version of fortune 500), there has been remarkable growth across the sectors. argri is still lagging behind, but things like some of the services and manu are well above the 10% growth mark. now if production grows obviously the number of workers engaged in them will grow, the rich will become richer no doubt but not at the cost of poor, infact he'll do so witht he poor.

    Well said by arnav "definite push by the huge inflows 10 b USD last yr, but that is only a part of the total market"
    Domestic mutual funds ...They are really performing well ( atlest a significant number of mutual funds are coming into picture) so it's not an all FII game .. and again growth is not only in Sensex .. Growth can rather be felt on street's avg salary of IIT, IIM gone up significantly , Just check the local transport , Phone , Automibile , Housing , banking can you ignore the changes ....!!!

    to pahdne ko bol kaun raha ahi..bas aaya kar aur likh diya kar sexy poem bla bla bla:P

    tere mouh mein ghee shakar!

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