The sensex has over the past 1 year consistently risen due to the continous flow of FII investment and a favourable political climate. even forex reserves are at a comforable USD 140 billion which should let india absorb any oil price hike.
I feel the small investor should now focus on index based funds which has higher risk / higher retuns.
Since the rate of return that FII are getting is much higher than any other markets, the money will keep coming in. the distribution could vary , some sectore may get more weightage. but the over mood is upbeat.
