Sensex Reaches Record High

The Indian stock market, the Sensex, has continued its strong recent performance and has reached a new record high during trading today (November 1).

It climbed to as high as 21,293 during the session, which is excess of its previous top point reached in 2008.

But not everyone is happy with the progress being made by the Indian stock market.

Phani Sekhar, a fund manager of portfolio management services at Angel Broking, explained fundamentals are not shaping up as he would like them to.

He claimed that the recent rush on the Sensex has only been driven by a handful of stocks "which are hopelessly expensive despite fundamentals".

Mr Sekhar added: "The liquidity rush is making people accumulate stocks. If fundamentals don't improve or liquidity tapers, then this rally won't have many legs."

India's economy had been expected to take a hit last month when mining company BHP Billiton announced it was pulling out of many of its exploration sites in the country.

The slow progress of regulatory approval in the Asian nation has led to many overseas companies ceasing their operations in the country.

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