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Sensex Hits 15,000

The Sensex has hit 15K in 146 days. Capital goods, oil and gas, metals and bank Indices have grown the most. Meanwhile, IT, FMCG and large consumer goods indices underperform in this journey from 14k to 15k. The jubilation in the market is obvious. For Ramesh Damani, Member at K Pact, it's an amazing journey for the markets and said everyone should feel honored to be a part of this extraordinary Indian market run.

On whether, the markets this time took too much time to hit the thrilling figure, he said, "The Dow took 18 years before it crossed the round figure of 1,000. So six months to reach this level is fine. It is believed the Sensex needed some consolidation and the suitable price valuation had to be discovered. Having done that, the markets still have broken out and with good breadth, which suggest the promise of maybe even a higher index. Never forget, records are meant to be broken and the markets are doing just that. This market has underperformed for too long and it was just a matter of time.

Technically and pyschologically it's an significant wall and we should expect some consolidation. However there is no sign of a top out yet and the uptrend is probably to continue. Amuzingly, the markets have been rallying in terms of a sectoral leap frog simply because one outperforming sector after finishing its run, passes the buck to another sector, which is helping the index to continue during every correction. A great deal of underperforming sectors have begun to participate, like auto, cement, sugar and FMCGs and the Index heavyweight, technology is expected to join in, going forward.

Parnum Tao, Head-Institutional Sales at Putney Investments feels even though 15,000, is a pleasurable level for the year, in PE terms, it means that markets are trading at close to 17 times its forward earnings. 'What it means now is that for the market to breakout of this range, a enormous flow of liquidity is needed.'

Most agree on this point as the quick influx of capital could be coming, not to an end, but a certain slow down. We've seen it time and time again, in the U.S. markets, Great Britain, Japan and greater Asia. It would make sense for a correction to occur at some point. How deep that correction is always the question. Additionally, is the rising real estate market at tied to this process and if a sudden crash occured, would it spell disaster? Time will tell.

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B. C. Terry is a 15 year technology industry veteran specializing in business growth and technology application. He is the chief editor of mynaukri.net, one of India’s fastest growing tools on market trends and India jobs. Additionally, he has interests in many useful entertainment site including slubber.com (video aggregator) and mybuzzcut.com (leading Myspace reso

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