Housing is also booming as low financing costs and rising salaries fuel demand for quality.
As more and more foreign companies move operations to India to take advantage of low wages and technical know-how, Indian firms are enjoying rising domestic demand for cars, clothing and other consumer goods.
"There is a consuming audience because 60 per cent of the population is below 49 years of age with enough disposable income to consume anything - and banks are in attendance to give loans. You can imagine the kind of self-sustaining economy India is."
As well as foreign investors, Prasad said the market was seeing increasing investment by Indian funds. He saw any reversal in the market as a temporary correction.
SBI Asset Management, 65 per cent owned by top commercial bank State Bank of India and the rest by France's Societe Generale, has seen its equity assets under management almost quadruple to Rs 61.3 billion ($1.4 bn) in the past year, as rising stock prices attract more investors.
With oil hovering around $60 a barrel the import bill for Asia's third-largest consumer is seen hitting $33 bn in 2005/06, up a quarter from the previous year's $26.6 bn.
The spoiler to the party could be high oil prices as India imports 70 per cent of its crude needs.
marketing@alchempro.com
