Question submitted by girin - 11, Sep 2014

How does SENSEX stand when compared to indices of other emerging countries?

1. Ease of doing business in India. As this will impact the FDI?
2. How are the home grown businesses doing on the indices?

MarketMan - answered the above question

  • MarketMan (14, Sep 2014):
    SENSEX is a broad based index which contains companies from various sectors. Usually some sectors perform good and some sectors lack based on business conditions. During bear market only some sectors do good and many others don't and during this time defensive sectors like pharma and IT do good. During bull market many sectors do good due to economic environment and also those sectors that are not doing well don't fall much. During bearish phase companies not doing good are severely punished.
    Now looking at market condition, looks like business including home grown business will do well provided they are well run and in boom sector. This is where fund manager or investor skills are tested. Modi gov is making right noise to attract FDI. Japan has already shown interest and this week Chinese premier is in India and we can expect some big announcements here.