Indian Stock Market Depends on Foreign Investor

Indian stock markets seen  large part of the downfall last year because of that fall in the Indian currency, which plunged to near-69 levels against the US dollar in late.

The participation of retail is poor and it causes a excessive dependency of Indian stock market on the Foreign investors.

The rupee is trading at around 62 levels against the green back and Linking the rise of the rupee to the stock market, It will be stable rupee which is holding the Indian stock market in the face of a EM sell off.

The main focus are on emerging market (EM) countries are among the most exposed to reversal of financial flows given that they saw large amounts inflows due to the US stimuli

The Sensex made a U-turn and rallied over 13 per cent in a matter of three months starting September. The 30-stock index rose from 18,619.72 recorded on August 30, to 21,170.68 observed on December 31, 2013, which .

The result of lack of depth in the market is that it has become a bourses for the global hot money investors who are driven by a set of issues.

The S&P BSE Sensex slipped nearly 6 per cent, or over 1,000 points, in three months starting August. And then stepped in the government and the RBI in the month of September announcing a slew of measures, including the much criticised rate hikes and curbs on gold import.

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