Expressing concerns over the Sensex movement, Mr D.H. Paipanandiker, Senior Economist at the RPG Foundation, said: “It is unusual and is not based on fundamentals. On what consideration FIIs are investing in the Indian stocks, is a mystery because the price-earning (P/E) ratio has reached 19 in comparison to 10 in the regional markets such as Korea, Indonesia and Thailand.” It is big question mark, for how long this upward trend can continue since it is not sustainable, he added.

In a move to caution, especially the retail investors, BSE has asked them to be cautious about the stocks, which show a sudden spurt in price or trading activity. The caution is specifically aimed at low-priced stocks.

Reminding the investors about the previous stock scams, it has urged them to adopt trading and investment strategies commensurate with their risk bearing capacity as all investments carried risk.

Some of the stock-brokers are, however, projecting that Sensex may soon touch 9,000 points, since the economy is doing well and profits of the companies are also expected to show better performance in the second quarter of current fiscal. The manufacturing and transport sectors have also shown the trend of absorbing rise in crude oil prices. For the benefit of investors, the exchange has installed a toll free number 1600 22 6663, wherein investors can inform on any specific lead with regard to any type of undesirable trading practices in any scrip or any type of market aberration observed by them.