I believe the author of the article should also study the impact of the rising inflation (and thereby rising interest rates) in USA. This is bound to have some effect on the FII inflow which so far has been largely responsible for the spectacular rise in the stock markets. Everytime the Fed has tightened its belts and raised the interest rates, there have been always some sort of repurcussions in the developing world. Its one thing to quote fundamentals (11 times forward earnings) but economic, political and technical analysis are equally important.
Oh! I believe HDFC said the stockmarkets will reach 7200 by year end? There was a report by Kotak Securities(?) that the Sensex would reach 7450 by Mid 2005. And as far as the fund managers are concerned they will never say that its a bad time to invest.
This same article with a sprinkling of economic factors such as rising interest rates and the 'bull market' being witnessed by Bond Traders would clearly show us that the stock markets have not yet completed even half their downward journey.
