Monday, December 24, 2007

Senses rises by 692 points, Dow by 205, Nifty 218 !

What a surge ! Sensex, Dow and Nifty up !

The dollar inflows, assures the economic experts, will continue to flow into India. So far they have been proved to be right !

But the average investor, I mean the ordinary investor, is jittery. He is now scared to invest in scrips. The FIIs dominate the market and own 33% of Indian shares !

The prices of food items are rising in US and India. This will definitely affect economy, even though both governments give low inflation rates.

The cause of the rise of the Sensex was said to be Modi's victory in Gujarat, India's no 1 industrial state. Huge investment is planned in Gujarat, almost 8 lakh crores and Gujarat will surge ahead.

Another big investment is coming up in Punjab. Sabeer Bhatia of Ex Hotmail ( who sold Hotmail.com to Bill Gates for 400 million dollars ) is coming up with a Nano City project in Punjab on 11000 acres. The project will include IT companies, airport and a University. It is a big NRI investment from a software engineer in Silicon valley. So more FDI inflows, more FII inflows, more NRI inflows and Indian will keep up tk 8-9% growth. But still the ordinary investor is confused now !

No comments: