What we see now in Indian market is irrational exuberance. No doubt that India, Inc is performing well and in growth mode but the question is whether the current valuations are justifiable. It is sad that our indices are so much dependent on FII and if they pull the plug we are gone. If FII find some other markets that can provide higher returns or if anyother bad news busniess or in the political side, they will take their money out and our markets wil be in big trouble. US markets (NYSE and NASDAG) do not have so much of FII stake like in India and they depend more on their domestic institutional and retail investors. Hope we will get to that soon.
