Indian Stock Market Getting Mad..

On Monday 8th August, the Bombay Stock Exchange fell by 146 pts to drop to 7600 somthg.

Over the past two months, BSE has seen a commandable rise of about 55%.

The investors got increased by one-and half fold within 2 months.

FDI..Foreign Direct Investment in India has risen considerably.

Significant boosting of Sensex has led our companies swell their market capital value.Reliance Industries became the first private Indian co to have a market cap of $1 billion. Also there has been advancement of India to the Top-10 chart of the countries having highest market value.

During the cataclysmic deluge that poured over Mumbai, Sensex had rose by around 200 pts.

Even when India had been afflicted by phenomenal Tsunami, there was ascent of Sensex.

>>Now Is Indian Stock Sensex behaving fickle or there is some sense in the economic progression of India??

P.Chidambaram , FM had recently expressed his opinion for the investors to be more cautious in their action. Now there has been a debate in Parliament when a veteran communist party leader accused the government of creating a delusive notion of the good performance of government by allowing the pouring of foreign money in large scale.

Ok, coming to Earnings per Share of 30 cos in BSE-30, which has risen to Rs.485 today makes sense for the feeling of despise among the investors towards the Indian shares being over-priced in their equality value.

One point is that the P/E ratio of the stocks, their profit to Earning ratio has not significantly risen; has been on the proximity of 15 which weakens the possibility of economic cession owing to the complex factors of supply and demand.

Lets hope for the salubrious growth of Indian Stock Market.