True Indian companies are investing overseas, but the money is raised overseas. These overseas companies have thier marker overseas and they make money overseas.
Besides 75% of all new funds injected into indian equity (stock) market is comming from overseas.
Reason stock has gone up from 4500 to 14500 is beacuse low interest YEN has been poured into indian marker by FII. Let interest rates in YEN rise to 4-5% and see the effects.
Take any Indian IT star and compare it's valuation parameters with IBM, HP, Yahoo, EDS etc etc you will see the valution of indian stock is on crazy side.
There is definately a good story in INdian development and no doubt India is growing and will continue to do so, however economic reality does not beget this fast a growth in stock market or currency.
India has to run a marathon and it cannot run it at the speed of 100M runner.
