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Q.

Sensex may touch 24,000 mark this year given the facts that the Indian economy is roaring, foreign investors are pouring money here etc-----news. What do you think about it?

Tags: money, sensex, indian
Asked by Good Citizen, 06 Jan '11 12:45 pm
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Answers (5)

 
1.

Well its anybody's guess . But seeing the things as they r i have my own apprehension . The food inflation has just gone out of control and is showing above 18.3 % now . With this sort of inflation RBI has to act again and economy may suffer due to rates hike . Fiscal deficit of 5.5 % GDP is also high . Current account deficit is also rising as per latest report . These r dangerous situations and FII, given any better opportunities may decide to pull out from India and the market may take a beating . IF by any chance the food inflation comes down quickly , fiscal deficit remains under check and export import shows better picture then yes we can be optimistic to get that figure .
Source: own ideas
Answered by sk singh, 06 Jan '11 02:51 pm

 
  
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2.

Just for India, I think we need to do a biannual calculation for FDI. This is to do a reality check on how much FDI that is generated to India gets rotated within India without getting translated into capital flight. Like if u have 20 billion USD worth of FDI in 2009, I would only report it in 2010 2nd quarter, after calculating how much of the 20 billion USD remained in India, and how much of it was taken back as capital flight.

India has a super heavy FDI inflow rate, but we have an equally super heavy capital flight rate. I have my doubts because even inspite of all this FDI inflow, infrastructure and HDI factors remain the same in the country.

Roads are still clogged. Mumbai still gets f***ed whenever there is heavy rain. Parts of the country still have 5+ hour daily powercut. Education quality really hasn't improved on the masses level. Quality of healthcare remains putrid save a few corporate hospitals. There has been no infrastructure reform, save national highways.

...more
Answered by A Moin, 06 Jan '11 12:53 pm

 
  
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3.

Political uncertainty due to demand for JPC n inflation may create hurdles on the way of the sensex.
Answered by Damodar Biswal, 06 Jan '11 12:50 pm

 
  
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4.

I seriously doubt it
Answered by iqbal seth, 06 Jan '11 12:47 pm

 
  
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5.

Political uncertainity means 18 K immediately
Answered by SriniVenkat, 06 Jan '11 12:47 pm

 
  
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