When the Sensex was around 30,000, I said that given the global slowdown, it was likely that it could drop to around 24,000. We are now below 24,000 and I think personally that Indian stocks are coming into buying range. Let us put it this way. They are now more reasonably priced than they were say nine months ago.
Personally, I think India may still go down to 20,000. I think that eventually the market will go higher in India but it will obviously depend on monetary policies. I prefer India to have a relatively tight monetary policies as they practice under Raghuram Rajan who I think is the best central banker in the world because if you keep money relatively tight, the currency is relative strong and this has happened in India.
This is the best for India to have a relative strong currency. The stock market is not important for the average Indian because few percentage of the [Indian] population own shares.
