New Sensex Levels

Possibilities and analysis

A Unanimous DecisionThe Sensex is going to reach new heights

Understanding the GDP and Market Cap

• India’s GDP is US$2.16 Trillion which was $1 Trillion in Nov 2007. This is a phenomenal growth because many would not have expected us to touch $2 trillion so early. GDP size-wise we are amongst the top 10 nations in the world. If we had continued to grow at 9% per annum then we would have become a $5 Trillion economy by 2024.

FII AND ANALYSIS• Since April 1, India has received $650 million, the lowest

among these emerging markets, according to Bloomberg data. Increased bets on India through participatory notes (PNs) could have also contributed to the slowing of FII flows.

BSE SENSEX• The BSE sensex has been the second best performer among developing countries’ stock

indices since January 1, gaining 10.2% in dollar terms. But the pace has slackened in April, with the benchmark underperforming peers, having risen about 0.3% since April 1.

• Hundreds of millions of dollars are waiting on the sidelines to get into India if the new government eases rules for portfolio investments, according to Mark Mobius, executive chairman, Templeton Emerging Markets Group, Franklin Templeton Investments. Brokers said India’s not the only country among emerging markets that has benefited from pre-election euphoria. Turkey, Brazil, South Africa and Indonesia are also headed for elections over the next three to four months.Foreign investors have so far pumped in a staggering Rs.7,764 crore ($1.3 billion) in the domestic stock market this month, primarily on hopes of a strong reformist government after the general elections.

Lowering of growth rate• India’s GDP is US$2.16 Trillion which was $1 Trillion in

Nov 2007. This is a phenomenal growth because many would not have expected us to touch $2 trillion so early. GDP size-wise we are amongst the top 10 nations in the world. If we had continued to grow at 9% per annum then we would have become a $5 Trillion economy by 2024.