India's surging stock market has hit a new high as its benchmark BSE index briefly topped the 10,000 points mark.
Indian shares rose 40% in 2005
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The BSE hit a record level of 10,002.83 before heavy selling pulled it back. It ended the day up 234 points at 9,980.
Indian shares rose by more than 40% in 2005 and many
analysts predict that its good run will continue, with the BSE
potentially hitting 12,000 by year-end.
Foreign investors have been pumping money into Indian markets, keen to take a share of its fast-growing economy.
They spent a record $10.7bn (£6bn) on Indian shares last
year, encouraging Indian savers to push more of their money into
equities.
Caution urged
The Indian economy is currently growing at about 8% a year, and showing no sign of slowing down.
"This has only reiterated investor confidence in the
Indian economy," said Jayesh Sheth, managing director at Kantilal
Chhaganlal Securities.
"Whether it is the institutional or the small individual investor, everyone believes in the economic growth of India.
"From here on there is no guessing what heights the markets will go to."
Other analysts were urging investors to be cautious.
"Though this is good news, investors must place their
money in strong stocks because the slightest correction or drop in the
BSE would mean big losses for them," said Rahul Rege, vice president of
the Sharekhan stock brokerage.
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