New Delhi, January 10: The heads of country's two largest stock exchanges onMonday backed contrary views on which way Indian stocks would move.While the head of the Bombay Stock Exchange (BSE) Anand Rathi said thecurrent boom was sustainable on strong domestic and foreign investorinterest, his counterpart at the rival National Stock Exchange (NSE)cautioned that the market could be overheated, particularly in theinformation technology section.The two officials were speaking to reporters after a customary pre-budgetmeeting between the heads of financial institutions and finance ministerYashwant Sinha. The budget is normally presented to Parliament at the end ofFebruary."It is rising too fast, too high," said RH Patil, NSE managing director."It is not good for the market, it should rise in a steady fashion.a sharprise can lead to a sharp fall. Information technology sector is extremelyoverheated," he warned.Patil also said the market had become volatile, responding to movements inoverseas markets. Indian share prices have recently tracked movements inoverseas stock markets, particularly the US markets."If the US market correction does not happen, then our market may remainstable," Patil said.BSE President Anand Rathi was, however, optimistic about the future trend ofshare price movements. "Day to day, there will be changes definitely. Butlong-term, it looks good. The undercurrent is strong," Rathi said. He saidthe price movement was linked to economic fundamentals."Ultimately, the price movement has to conform to economic development oreconomic growth," Rathi said.
