Indian Shares Test All-Time Highs

Foreign fund inflows have fueled a rally in the Indian stock market, with local traders expecting further upside in the benchmark index.

The BSE-30 is poised to hit 25,000 by September or October 2011 fueled by strong earnings growth, Deven Choksey, Managing Director of KR Choksey Securities told CNBC.com.

The index jumped to a life-time closing high of 21,004.96 points in a one-hour special Diwali holiday trading session last Friday, leaving it around 200 points shy of an all-time high.

Foreign fund investments of $26.6 billion thus far in 2010 have
powered the benchmark index nearly 20 percent higher so far this year.

The index, however, gave way to profit-taking in Monday trade to slip 0.5 percent.

Choksey also said the recent rally, which was fueled by commodity stocks, would have been more welcome if it came from the banking sector.