Indian Markets hit 15k

Indian markets have finally Touched 15k much to the delight of the millions of investors and traders in the country. The recent spurt in sensex was unexpected as every one was expecting a correction after last weeks appreciations. But contrary to expectations sensex rose. And what surprised most of the analsyt was that the rally was led by IT stocks which have not been performing too well for the past 2-3 months due to appreciation in the value of Indian rupee. This rise can be attributed only to an inflow of FII(Foreign Institutional Investors) funds. They have been showing keen interest in Indian stocks lately, due to higher Earning per share ratios, expectation of a good quarterly report this quarter from most of the capital goods companies , steady but fast growth of the Indian economy over the past four years and last but not least the appreciating rupee has worked to their advantage giving them very high returns from the Indian market.But yesterdays spurt in sensex was fuelled by one more important factor ie, relaxation of regulations by the chinese government allowing chinese invest to invest in foreign stocks exchanges. This relaxation came into effect on july and has been a major factor in the sudden boom in Indian market on thursday and friday. The interest rate in china being lower at about 3-4% and the chinese stocks being extremely over priced, substantial amount of money is expected to flow out of china to foreign stock exchanges in the coming month. This is a reason for Investers to cheer. Most of the shares of bluechip companies like infosys , L&T and those of undervalued companies like Cairn , Indus India bank , Mindtree , HindMotors etc can be expected to rise . Though the desire to book profits and exit the market maybe strong in the coming week. Investors who would make the rational choice of staying invested can expect substantial gains from their investments in good shares towards the month end.