One more point that needs mention here in this context is the fact that the index is not the true measure of reflection of the stocks of the day. A mere 30 companies governing the way the markets are moving is not a perfectly statistical method to measure. But in the given context, one most important point to be mentioned is that the sensex is seeing this upwardly movement primarily because of the FDI investments into some of the sectors. The lack of minimum investment lock in period for the FDIs is furthering the cause of instability. The FDIs can withdraw their investments suddenly and the sensex will go southwards once again. One needs to ponder, are our industries doing really that well that the sensex is showing or are we more into the India Shining hype?
The safest bet would be mutual funds which put in a varied portfolio of investments to safeguard investor interests, rather than buying stocks in an inflated market.
