So what is causing the Indian stockmarkets to rise at such a frenetic pace?
Even though there is consensus over the reasons for this unprecedented Bull Run on the Indian stockmarkets, no one is quite sure why it is happening at the pace at which it is happening.
However, the reasons for the Sensex's stunning rise are many:
1. Major foreign and Indian investors are pouring money by the buckets into the Indian stockmarkets because of the attractive returns they are getting from here. The reason why money has taken flight from some major foreign markets is because growth levels in those economies has stagnated for a while now, making them less attractive. Almost 85 per cent of the foreign investment into India in 2007 has been in the form of equity -– or stock market -- investment.
2. Stellar corporate results from Indian companies have made domestic and foreign institutional investors salivate. And as they buy more of these companies' shares, the entire market soars. Corporate India has a positive growth outlook which is rubbing off on their stocks too.
3. India's market reforms, better regulation, more opening up of the economy and a strong judiciary have added to the market boom.
4. Inflation has been contained, which will add to the nation's growth, making it a very alluring economy.
5. The country's political climate is very stable and there appear to be no threats to the country from any quarter in the near term. And despite the worries of rising oil prices, possible natural calamities or a weak monsoon or even an economic meltdown in the US, India remains a strong economy with all its fundamentals in a robust state.
6. In the long term, Indian markets are being considered as one of the most attractive in the world.
7. The Reserve Bank of India's monetary policy has kept the economy stable and the interest rates are at levels that foreign investors find very appealing.
8. With the US Federal Reserve cutting interest rates in America, investors are looking at markets like India to earn more on their assets.
9. Rising Asian markets, including Hong Kong and Korea, are also helping lift the entire region's markets.
10. Also, the Indian currency -- the rupee -- is strengthening against the US dollar leading to dizzying growth of its stockmarket.
11. And finally, there is this widespread perception that India is the place to be and that is what the global investor is adhering to.
Image: A digital display screen and the stock price ticker shows the new all time record high figure of the benchmark Sensex outside the Bombay Stock Exchange in Mumbai. Photograph: Pal Pillai/AFP/Getty Images
Also read: When the Sensex crossed 16,000
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