Indian Securities Exchange Hits 15,000
By TB Saulzman
The Indian Exchange has hit 15,000 in 146 days. KPO, oil and other natural resources, metals and bank Indices have grown the most. For the time being, IT, FMCG and auto indices outperform most in this trip from 14k to 15k. The euphoria in the market is obvious. For Ramesh Srinivasan, Member at K Pact, it's an amazing journey for the markets and said everyone should feel lucky to be a part of this extraordinary Indian market run.

On whether, the markets this time took too much time to hit the magic level, he said, "The Dow took 18 years before it crossed the round figure of 1,000. So six months to reach this figure is fine. It is believed the Sensex needed some consolidation and the appropriate price valuation had to be revealed. 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 important barrier and we should expect some consolidation. Nevertheless there is no signal of a top out yet and the uptrend is probably to continue. Interestingly, the Sensex have been rallying in terms of a sectoral relay simply because one outperforming sector after completing 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 play along, like auto, cement, sugar and FMCGs and the Index big dog, technology is expected to join in, going into the future.

Kumud Rikhi, Head-Institutional Sales at Putney Investments feels even though 15K, is a happy land mark for the period, in PE terms, it means that markets are trading at close to 17 times its forward earnings. 'What it means going forward is that for the market to breakout of this range, a enormous flow of liquidity is needed.'

Most agree on this idea as the sudden influx of capital

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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 big that correction is always the problem. 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 20 year technology industry veteran specializing in business growth and systems integration. He is the chief editor of mynaukri.net, one of India’s most useful resources on market trends and India jobs. Additionally, he has interests in many large entertainment site including slubber.com (video aggregator) and mybuzzcut.com (leading Myspace graphics site).