Markets searching for Leadership?

The Bombay Stock Exchange and the National Stock Exchange for quite sometime are showing a flip-flop behaviour triggered by global events more importantly worries of a US recession. This being the fact that the US Fed has cut interest rates repeatedly, which usually is a reason for our markets to cheer.

Should we really look for external factors before believing our own domestic story? Or is it the case of the domestic story hinging upon global factors upon which it bound to slow down in the times to come. Surely the consumerism shown by the present Indian middle class can vouch for a strong growth momentum being maintained on the domestic front.

Stocks like RNRL, RPL, India Infoline etc. had sky rocketed based on factors other than their current intrinsic values. Now the same people who had bet on their positive outlook for the future seem to have lost their belief for reasons unknown. Are we waiting for the FIIs to show us the way? Or is the time right, to set the ball rolling for a year bigger than 2007.