India: Is it too late?

On the Sensex Index, Indian stocks have increased nearly 28% since January 2005, despite a market correction of 11% in October 2005 (7,795). The current rally is more than two years old, with the market having risen 164% since April 2003 (2,949). Investors are cautious of the current climate, having seen historical rallies in India in 1992, 1994 and 2000 all ending with painful retrenchments.