The cash boom in Indian stock markets

We all know that after 9/11 the US stock markets haven't been lucrative enough for the investors. And at the same time the economy of the east has been at its best esp. Indian . Now the markets are flourishing in India and cash is pouring heavily in Indian stock markets. But here comes the catch, at this point of time shares of even those companies which have recorded only losses are on the upswing and this can be accounted to the huge cash rush. Foreign investors just invest without finding much about the company, this results in what we see today. But beware that if you haven't done ur research right on the company the shares are bound to lose money at some point or the other.
Just take the example of a company called HFCL . the australian media baron invested heavily in it in 1999. As soon as the news broke everyone was vying for its shares. This resulted in share recording a high of some rs. 2500 odd per share which is extremely high in india. Check it out now and its not even trading at 60paise.(100 paise = 1rs.)
so beware and do all your surveys right before you invest cause there's no shortcut to success.