According to market analyst and fund manager Mr Payal Gupta, the markets have rebound to an unusual extent with a recovery of a whopping 400 points gain on the BSE index last week. Mr Gupta is hopeful that it will scale a further 350 points by the end of this month.

A majority of the stock-brokers also agree with his statement.

The main reason for the robust recovery in markets is that the foreign institutional investors are back in the main stream.

The decision of the US Federal Reserve to raise interest rates by 25 basis points to 4 per cent has been a determining factor for their re-entry.

FII investments have indeed surged in the past few days to over 1,500 crore.

The Finance Minister, Mr P. Chidambaram, has said that the economy was expected to grow at more than 7 per cent this fiscal and that there is an investment boom in many sectors, which has added value for future business earnings.

V. Venkitasubramanian

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

© Copyright 2000 - 2009 The Hindu Business Line