The BSE Sensex was up nearly 600 points yesterday, it’s 10th straight day of gains and 10th straight record close! The last few months have seen the market go up a couple of thousand points and it shows no signs of slowing down. However the index has also seen thousand point drops when it has risen so fast in the last couple of years. Eventually though it has always recovered and reached new highs very quickly.

I sold all my IFN in the India Funds rights offer and am waiting for dips below 50$ to buy some back. However this time around I might consider INP or FNI instead. I do own some INP already and it has given me spectacular returns. This has been an expensive year for me with travel, immigration and other expenditures, however my exposure to emerging markets is keeping me on track to meet my net worth goals for the year.

5 thoughts on “Indian Stock Market sets sights on 18000”

  1. Hello Siddharth, I was looking to invest in India and read all your articles. You have done extensive research, I am impressed. Do you have any advice for ADRs vs India Mutual funds?

    Thanks and keep up the good work!

  2. I keep track of ADR premiums at http://www.parchayi.net/invest.php
    ADRs are a good buy if their premium is very low but with the way the Indian stock marke is going, you wil have to follow them very closely. I would recommend the ETN (INP) or the mutual funds rather than individual ADRs if you are new to this but if you feel like doing the legwork, ADRs can be great.

  3. Thanks Sid, I think i am going to invest in ADRs. BTW how do you calculate the premium for the ADRs? Also do you know the premium for Sterlite Industries India Limited (SLT)?

    Thanks!

  4. You find the price in Rs., price in $, share ratio (from adr.com) and take the exchange rate and calculate how much more you are paying in $.

    I don’t know the premium for SLT. I will add it to my list at parchayi.net in a few days.

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