Yes. That is why FIIs have bought equity worth more than Rs 93000 Crore by now in this year. Retail investors would flock when SENSEX turns 20,000 or 22,000 and in some are waiting for even SENSEX to cross 25,000 or 30,000. Then there will be correction to 22,000 or 20000 then they will lame stock market and FIIS and so-called operators. Arey, if you have ought around 15000-18000 level, you would still be at a profit if SENSEX crashes from say 25,000 to 20000. But then our patience and memory are in short supply and we have oversupply of greed and blame game. Long live small retail investors who are feed stock to rich investors.
Couple of good earning by the big corporate houses would not be the only indicator to conclude that we are completely out of woods. It would largely depend upon the whole pack of result. Of course, economic scenario has not eased and would need some more time before it manifests its perfect results.
During the last 6 quarters, the mood is gloomy. Exports are moving up, imports are not coming down, the current account deficit is moving higher, currency is depreciating and the real cost of foreign currency borrowing has become a big burden on India Inc., Though the international rates are quite down, Indian companies due to currency depreciation, could not enjoy the benefits of the same for quiet sometime. In the 2nd quater, much to the relief of corporate sector, the Rupee recovered quiet a bit and cost of borrowings have more or less stabilized. India has a great potential to recover faster than the world economies due to inherent strength of domestic consumption. Had the government was proactive, the situation would have turned for better a couple of quarters before. At some point, government and it`s action or lack of it, becomes irrelevant and the economy will move on auto pilot mode. What we are seeing today is the same.