Nirmal Jain has expressed his views in a free and frank manner on the prevailing conditions in the market and he has referred present bullishness to FII money moving in the market. His views are as appended below:
At this point in time market sentiment has improved FII monies coming in. This is the first time that the FOMC gave some guidance on interest rates and they said they are not going to increase them for three years. Liquidity is benign all over the world and though that liquidity can flow into emerging markets, like in markets like India which is what is happening. A lot of monies are coming into the primary market because they find Indian stocks cheaper in the long-term. So, even if growth tapers off to 6.5-7% that is still good. A good amount of money has come in. From now on market will consolidate. I don't think that this runaway rally can continue for too long because the key attractions that valuations are attractive will now become little less attractive as we go forward. Now investors would look forward to policy actions what comes in budget, what happens on the macro front here as well as any news from Europe.