A Red Flag for India's Bull Market

Will India's bears come out of hibernation this spring to put an end to the bull market? Stocks are trading high, but earnings may be down

Forget the sacred cows, here come the bulls. Investors in India seem to be having a fit of exuberance, irrational or otherwise. Bombay's benchmark stock index, the Sensex, has broken records almost every day this year, moving from 9,390 on Jan. 2 to 11,747 on Apr. 5. At least $11 billion in foreign money has poured in over the past year seeking to capture the 50%-plus gains seen in 2005.

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