New Delhi, Nov. 24 -- The recent bullishness in the Indian stock market should not come as a surprise.

Much to the disappointment of the bears, the market refuses to fall.and there is little reason to believe it will, absent a major negative shock.

The reason is simple. There is just too much money (i.e., liquidity) flowing into the market. Foreign investors may have sold, but domestic investors have more than made up for it.

In stark contrast to the past, where foreign institutional investor (FII) selling was the main reason for corrections, now their selling does little to scare the market. Selling by foreign funds (just like their buying) is now seen as a part of the normal functioning of the Indian market.

This means that the upwa...