| Indian Stock Market occupied a top slot in 2006, | | | | India's strong economic growth. As India is getting |
| together with an unexpected fluctuation with sudden | | | | younger and younger, its productivity is bound to rise. |
| rise and fall, but maintained the sensex mark. In | | | | Investment in Indian market must be seen in a |
| 2006, the Bombay Stock Exchange crossed the | | | | marginally different context. As much as 60 percent |
| 10,000 level mark. There were speculations amongst | | | | of the GDP is led by domestic consumption whereas |
| the bulls at the Dalal Street (Mumbai) that sensex | | | | other emerging countries are dependent on foreign |
| might cross 14,000 marks, but unfortunately the year | | | | market. For the next few months ending the financial |
| 2006 ended with the average 12,500 level. | | | | year 2007,sectors like FMCG,pharma,retail,media and |
| Fundamentally strong, the economy was the main | | | | textiles looks attractive in terms of |
| key but raising inflation rate and high crude oil prices | | | | valuation.Basically,India ,a service driven growth story, |
| applied brakes on its acceleration. | | | | has enough to offer since we are in the middle of a |
| The Indian stock market raised to dizzy heights in a | | | | capital expenditure boom and rapidly expanding |
| span of 194 days, from October 28, 2005 to May 10, | | | | outsourcing. |
| 2006, with the BSE sensex rising from 7686 points to | | | | India's growth will be sustained and may reach |
| 12612 points, a gain of 4962 points. It then fell very | | | | greater levels if the government act on reforms |
| fast to a level of 8929 points on June 14, 2006, | | | | front.Infrastructure, ports, roads, SEZ etc requires |
| registering a loss of 3683 points in 35 days. It has | | | | more attention and investment. Investment in 2007 |
| again reached a level of 12010 on September15, | | | | will be the brighter period for any investor. Going by |
| 2006, again of 3086 points in a span of 93 days and | | | | the fundamentals, most experts believe that for the |
| presently the market is trading in the region of | | | | next 6 to 8 months there is very limited downside |
| 13250.Like April 2006, some felt that when the | | | | risk at the current level. As per the Morgan Stanley's |
| market rose high, that time has come for a | | | | report, technically speaking, this quarterly period |
| correction and the market was totally overheated. | | | | (June2007), the Sensex would reach the point |
| Investors were of the view that when the market | | | | 14700.Also in the near future, the Indian stock |
| started falling and a negative sign was taking up, it | | | | market will see foreign companies raising funds |
| could reach up to 9000 level, but the sensex has | | | | through Indian Depository Receipts (IDR).But at the |
| bounced back and reached 12321 points on last | | | | same time we can see that the Indian capital Market |
| September 27,2006. | | | | is characterized by its high degree of volatility which |
| There are concerns over tight global liquidity and | | | | has been instrumental in both creating and destroying |
| deteriorating trade balance. These may not check | | | | the wealth of many investors. |