The markets in the developed world have been turbulent over the past few months. In spite of this Indian bourses have kept their nerve and not seen any major breakdowns. This is the most important indicator, that gives the confidence to me that the SENSEX to touch 20,000 in the short term and 23,000 by September 2011. The fourth quarter, however, according to him may be tricky in terms of earnings.
The western market is expected to grow at a slow pace of 1-2%. And, “There are a lot of funds investing in Indian and foreign institutional investor (FII) flow is likely to stay unless there is any external shock.”
When we see the past behavior of Indian market and the fund flow the market is soaked the domestic selling and recorded outflow from the fund due to 3G spectrum. The mutual funds in India seen selling in last quarter however in the same period FII seen accumulating the Indian stocks and strengthening their position in the Indian holding. This is looking first series of serious investment of foreign player and this is looking like the continuous trend because there are only few pockets are now in world where growth can be predicted so India has become the heaven for investment.
So the coming October market is going to take a sharp fall and that fall will be golden opportunity to get in to the Indian market
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