Climb in Sensex Reflects Sound Economic Fundamentals of the Country : PHD Chamber

Though the surge in Sensex has been triggered by the decision of US Federal Reserve to cut interest rates by half a point, the climb also reflects the sound economic fundamentals of the country and reaffirms the resilience of Indian Capital Market, according to Mr. Sanjay Bhatia, President, PHD Chamber.

Mr. Bhatia said that with economy expected to continue its growth at between 8- 8.5%, a belief backed by the first quarterly results which show a growth of 9.3% and a turnaround of agricultural sector as against the performance last year, the mood is upbeat and business confidence is at a high. These results are also indicative that demand in rural economy would be propelled further, providing fillip to growth.

It is expected that there would be higher inflows of FII Investment into the country as India would be perceived as a favoured destination offering better returns on investments as against other emerging economies. The industry expects that the upward move of the indices would be sustained as the industry continues to create additional capacity and investment flows continue unabated. However, a greater depth in the market and greater participation of the individual investors would be desirable for maintaining the high levels of indices and a developing a healthy capital market, Mr. Bhatia added.