1. It is no doubt the right time to invest in Indian equity as History repeats itself and here in this scenario of India as and when the Equity yield has crossed the G-Sec yield, Indian markets have given a signal to buy and thus it makes sense for foreign investors to follow this approach while making a decision to invest in Indian share market. Moreover a live example of this fact is sell off in Indian market in Jan 2008 as than G-Sec yield was higher than equity by 4% and thus we saw a sell off in the market. Thus 4% differential between G-Sec and equity yield is a signal to lighten the portfolio.

2. In present scenario we can see that Equity yield has already crossed the G-Sec yield and thus it is the right time to go long in equity but with a long term perspective as we can say that this method has already given a buy signal as we are near the bottom of the cycle as far as equity markets are concerned.