Sensex is back again above 17K but the stock prices are yet lower than they were earlier.
Every thing which has gone up has to come down and can again go up that is what the state of Indian stock market is.
We saw lows of 8K on Sensex last year. This year it bounced back to around 18K levels. More than 100% return in a year! Sounds great. But the stock prices have yet not caught the momentum specially the small caps.
Its now time for a fresh new year 2010. Markets may remain positive for a while. Certain factors restraining the markets to go up are:
Global factors – liquidity, FII Investment, etc.
While internal factors such as abnormal rise in food price, budget coming soon, liquidity crunch!
Simply speaking markets may rise for a while and may witness a small correction sooner or later.
Happy Investing!
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{ 2 comments… read them below or add one }
We all hope for a upward going market, dont we:-)
FII has actually increase on a YOY basis, i think it is the domestic investments that have been a little sketchy to say the least.The BUY and HOLD confidence has not returned and hence the volatility.
as always, stock market is one of the best ways to earn lots of money.`*`