INDIAN STOCK MARKET: DEFYING LAW OF GRAVITY:

Many pundits are baffled to see the pace at which Indian market is going up. Surpassing 1000 Sensex points at a record time (6 days) and still the market is not showing any let up. The much predicted profit booking session on this Friday was found to be elusive. The market has some discerning buyers. But interestingly not many dead wood were floating around this time, it is a selective surge forward.

To me the Indian stock market is actually behaving as it should behave, going up. I have my reasons and I am giving you only three

1. The Indian stock market is still accounting for a small fraction what the overall Indian economy actually is. Imagine a few public sector companies listed in Stock market; here I am throwing only two among lots BSNL and Railways. We should not forget the small scale industries which are not only profit making but also contributing a good fraction to GNP. What about cottage industries, unorganized transport industries, distribution network and so on. There are still lots of spaces to spread our legs.
2. We Indians are used to play it safe; we have some good savings tucked in bank fixed deposits, insurances or small saving accounts which do not fetch substantial return. Imagine the Indians discover the potential of stock market; our regulatory bodies are in right direction to prove that stock market is also a viable media to save or grow even for small investors.
3. Most of the developed markets are in a shabby condition, the investors are not very comfortable there and they are coming in flocks to emerging condition. The growing interest of them in Indian stock market is evident in the present rally.

So what is the optimum speed our market should go up? At an average 100 points of Sensex per day or 50 points or even 250 points to make our pundits comfortable. No one can have an answer.

So let us stop being Faberish till our fear over take our greed and bask in the rays of rising Sensex sun.