Indian Stock Market - High Action Day

I had been closely following the high action drama that was going on the Indian Stock market. Surely a windfall of the USD after Fed cut down interest rate by .5 points. The entire gamut of funds flew down from the US economy to the developing and the third world front. Typically the Indian Stock market rode the bullish wave to touch 19000 figure, that was something tremendous. The market is further inclined to go up to touch the 20000 figure in next week or so. But is that what we are expecting of the industry experts are looking towards.

If I run through the minds of the industry experts expressing their thoughts on various channels, I fear a High action drama and a series of high action days where the FIIs might go ahead on a Profit brooking spree triggering the collapse of Indian Stock market back to the range of 15000 to 16000. It is quite a surprising rise and equally would be the downfall.

When I see today most of the stocks are priced quite high as compared to the real performance of the companies and that means that has to come down. This high swing in the stock market reminds me of the Harshad Mehta effect.

As I write this post, I hear that the other Asian Markets are not performing as good, so do I hear the bells ringing??

Mayank Trivedi