Where Are Indian Stock Markets Heading?

Where would Indian stock markets are heading from here? BSE SENSEX has been trading rangebound for past three months now. 14500 to 15500 and around has been the range of trading.

If you look at the peaks in the chart, they indicate the lacking streangth in breaching the range mentioned above on the upper side of it.2 days back I heard Shankar Sharma, famous bear in Indian stock market, speaking on TV about correction in stock markets. He is confident that Indian stock markets are bound to see 10-15% correction in near term.He mentioned that SENSEX could go to 13000 levels before reaching 17000. Shankar Sharma's statement is based on performance of world stock markets.

World stock markets are riding with demand from chinese markets. The problem is, demand in Chinese markets is depleting eroding the growth.The current rally in Indian stock markets is more a technical rally and not the fundamental one. So what does this mean for long term invetors? Should you stay away from stock markets?It has always been said "every time the markets go down, that is a buying opportunity".So if markets correct by 10-15% as Shankar Sharma says, be ready to buy stocks at lower prices for long term investment.

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Indian stocks second best performers among BRIC in April

Following a sharp recovery in the equity markets, Indian stocks have emerged as the second best performers as compared to their peers in three other BRIC nations -- Brazil, Russia and China, giving close to 20% return in April. According to an analysis of MSCI Barra indices, a measure of returns from various stock markets across the world for foreign investors, Indian stocks have given the second highest return after Russia among the four BRIC countries during last month.

Indian stocks have provided a return of nearly 19.54% in April, while China and Brazilian markets have given 10.87% and 18.89% respectively. However, Russian equities have managed to outperform the Indian stocks in the month as it provided investors with a positive return of over 21%, as per the analysis of performances of Morgan Stanley Composite Indices (MSCI) for various nations. The 30-share benchmark index of Indian stocks, Sensex, gained close to 1,700 points in the month of April to settle at 11,403.25 points on April 29. Indian stocks have even outperformed the MSCI Barra's emerging market index, which includes all the developing world markets, giving returns to foreign investors to the tune of 16.28% in the month.