Market Rising: Liquidity, Short Term Interest Rates (secret behind market moves)

Markets have made a swift move upward..

Change in Fundamentals?

FII Investments?

NO .. I dont think so.. The secret is "Short term interest rates (Liquidity)"

Just look at the MIBOR (Mumbai Inter Bank Offer Rates) and look at Index movement.
April 2011 3 Month MIBOR Avg (6 days data) :9.055%
March 2011 3 Month MIBOR Avg (22 days data) : 10.16%
Feb 2011 3 Month MIBOR Avg ( 19 days date): 9.48%
Jan 2011 3 Month MIBOR Avg (20 days data): 9.10%
Dec 2010 3 Months MIBOR Avg (22 days data): 8.74%
Nov 2010 3Months MIBOR Avg (20 days data): 8.03%
Oct 2010 3Months MIBOR Avg (21 days data): 7.65%

Conclusion: Liquidity is the medium on which stock prices runs.. drop in liquidity will be reflected by rise in  short term  interest rates.. and fall in stock prices. 
Short term interest rates are leading indicators .. ie 
- Rise in short term interest rates will be followed by a drop in stock price.
- Fall in short term interest rates will be followed by an increase in stock prices


FII Investments.. pulling out or pumping in will directly affect availability of short term credit. So short term interest rates are the catch all indicator of market sentiments..


MIBOR Rates are available here (Link)