How?

FII participation till August-2010 was more than 60,000 Crore and The current year's figures participation is just closer to the all-time high of $17.6 billion, recorded in 2007, just before the markets crashed because of a global recession.

The memories of 2007-08 are still fresh, when the FII participated heavily till a point of time and then suddenly started withdrawing. Last year the net inflow of FII was around 83400 Crore which will has been already breached and if the momentum is upbeat 1, 00,000 Crore is what the anticipated, with 2 active months to go for the current year ending.

Reliance Industries which is having the highest weight on the bourses was 1100 + when we were trading 10% below the current indexes level, since then the stock has depreciated by almost 10% but the market has gained 10%. There are other stocks also, for whom the prices observed the same trend.

In the mean time everything has escalated to newer highs right from real estate, petro products, commodities and what not. Real estate is booming like never before, the rates are more as standardized and there seems to be active lobby of builder community to jack up the prices. In areas around the city you have a standard rate of INR 18000 Square yrd. And more you move towards the city and within the city the prices are as high as 65000 square yrd.

The prices of residential scheme rise with each passing day, as if there is no tomorrow, I don’t know what is signifies but “Everything can’t go parallel”, that’s what I believe. If one sector is performing well other has to be compensate to maintain equilibrium. If all the traded commodities are scaling up then does it means there is enough demand in the market? Well I don’t think so. This is a fictitious situation created by market players.

I don’t know how to deal with this but the proposition all around doesn’t seems very competitive

Image source: vpmath.wikispaces.com