The Indian Stock Market is consistently making new highs as Foreign Money Surges into India it its hunger for yield.FIIs this year have invested almost $15 Billion into the Stock Markets as Indian Economy grows at a rapid 8%+ growth.Along with Thailand,Malaysia,Indonesia and other emerging markets,Indian Stock Markets are approaching Bubble Territory of the late 2007 and early 2008 days.Substantial Risks are being ignored by the Herd Mentality of Portfolio Managers who are lapping up India’s Growth Story.Domestic Money on the other hand has been very circumspect during the last 1 year.Domestic Mutual Funds have become aggressive sellers in the last leg of this rally while Retail Investors are Bailing out Enmasse.
Retail Investors have sold around $2.5 Billion of Stocks in the last 1 year when the Stock Market has catapulted by almost 25%.This is one of the strangest bull markets as Indian investors remain largely skeptical of this rally.