Now investments in Indian stocks for Long term

• Foreign investments (FII, FDI) have made high returns from investments in Indian companies.
• USA which was in recessionary pressure till 2010 have now manged to move out of recession and so foreign investors who had invested in Indian cos will now withdraw investments and invest in US cos.
• This is how FII withdrew investments form Indian cos few weeks back and Sensex made a bottom of 18900 aprrox from 20000.
• Do this investors find a better investment scope in US cos, Yes because their stocks were undervalued till now and so can expect higher returns than investment in Indian cos.
•  Also India is facing high inflationary pressure so the prices of raw materials will rise and that is a threat to manufacturing sector as they have to pay more for raw materials and also control the cost price of the product in the mkt, So what happens they have to compromise on profit margins.  and so the scope of returns on stocks of these cos reduces.
• This is the correct time to remove all your investments from stock mkts.
• FII & FDI never invest for long term they are always short term money makers because they are concerned about the world economy as a whole where they find more opportunities for better returns.
• India will grow for long term but Chinese economy seems a threat in 2011.