Last week recovery of sensex, the benchmark index of India’s stock market may have given some boost to the confidence of investors and policymaker but the outlook is still doubtful.
The recent rally was inline with global recovery and driven by again FII’s. In April 2009, till today, itself the FII’s investment crossed 1000 cr mark. See FIIs upbeat in FY-10; invest Rs 1,000 cr in April so far
You can not rely on FIIs for sustainable growth, that is too in such global scenario when every week the investment trends surprise us. If you rely on fundamentals to asses Indian slow down, the prediction are not healthy either. See OECD report which says the slowdown in Indian market will continue. From investment perspective I suggest ‘wait and watch’.
The sustainable key drivers of growth of Indian economy are truly internal and based on the fundamentals of our own economy. In the post WHY FUNDAMENTALS OF INDIAN ECONOMY IS IN QUESTION, i have tried to identify few.