Sunday, September 19, 2010

Indian stock market - Up, up and away

To start with let me introduce my friend's site here - www.deals22.com, which is more of a deals directory accumulating available deals. Check this for electronics, flights, clothes & apparels & more.

Amid all confusion, indian markets continue to climb up beyond logic. As the consumer psychology works, perhaps markets are destined to move a bit more before receding simply because small investors might start feeling cheated. In the last few weeks, mutual funds have been receiving redemption requests at 2X-3X of normal times. This suggests that small investors are cautious and are booking profits expecting markets to correct but if this doesn't happen, they might start flocking D-street again.

The same psyche also applies to FDI funds as they have a responsibility to their investors and they can't just sit on cash for very long.