Personally I follow AAP ( I hardly hear this word on any place when I talk to my cousin relative in India- they have no clue! Only the know buy Reliance or buy this and buy that...I don't know why there is no focus on AAP??) Anyway I do invest in Indian equity mkt indirectly by country specific US MF like Matthew India (MINDX), or ETF call IFN but due to recent $ decline I am planning hedge against $ and so want to increase my Indian equity portion little bit more by directly investing In India.

But the way sensex is moving I am little concern, specially I am planning to increase my holding in US based Indian MF, which can directly effect with Sensex movement. From 2003 to 2007 Sensex moved to almost 15k! I am kind of lost. What are the major factors moving Sensex? I don't think retail investor can move sensex like this. Is it Weakness of US$ or something else? Is there any chance for reversal FII-FDI flow? Is there locking period for them? If smart money stay longer time and they may attract new money in that case this will create bubble bigger and bigger and cause major crisis.

Well this are all If's and But's... but just want add my 2 cents here... Basant ji has already said lot in his first post., I am afraid for armature investor/trader who just got couple of fat check due to IT/BPO job mkt boom and about to buy some expensive stock, which is bound come down drastically in few months. Beaning from Gujarat I have seen in Harshad M time, people has put their life time savings and lost everything. Other day I was just talking to my cousin and he told me that now even panwala & Barber is telling you what to buy and what to sell... thats scary!

Anyway I am planning to invested for 5yrs in Indian equity mkt, so what Sr Member think about it? In US 15% CGAR is big thing! So I will take 45%

Thanks,

Lakshya