Sunday, November 7, 2010
The Indian stock market ended at an all time high on the Diwali 60-minute Special trading session on Friday. Diwali trading is arranged every year on the festival of Diwali to pay obeisance to Lakshmi, the Hindu goddess of wealth and prosperity; it is also seen as welcoming the New Year of the Samvat calendar. The Samvat calendar is 56.7 years ahead (in count) of the solar Gregorian calendar.
The benchmark 30-share Bombay Stock Exchange Sensitivity Index, Sensex, rose 0.53% or 111.39 points to a record close of 21,004.96. Sensex closes above 21k pts for the first-time in its 135 years history.
Indian markets have attracted about USD 26.74 billion this year of investment from foreign institutional investors. The sale of a 10% stake in Kolkata-based Coal India last month was the biggest share sale in Indian history and banked the government 3.4 billion dollars. Coal India has risen 43 percent since listing at the stock exchanges this week.
According to Mr. Rakesh Jhunjhunwala “This will continue for long periods of time. If you look at India we are 3% to 4% of world GDP, we are not even 0.5% of USD 30 to USD 35 trillion in the investment of institutions worldwide in equities. Our share is USD 250 billion, USD 200 billion may be and it could go up to USD 1 trillion. So I see no reason why money will not come. Don’t forget one thing that India is an open country. Indian companies have return on equity. Among the emerging markets we have the best corporate governance. We are well regulated; we have got good trading systems. Why will the money not come you tell me?” Mr.Rakesh Jhunjhunwala is tagged by the media as “India’s Warren Buffett”.