We are in midst of a fantastic rally of our capital market. Both the market indices "Sensex" and "Nifty" are designed beautifully so that they depict the economic progression of our industries. In other words, these indices actually give a picture of the economic progression of our country.
Economic progression is generally a synergic effort. No single sector can go ahead of others by miles. In the process it will drag other sectors along with it. Or we can say the other sectors are pushing one sector up.
It is some what odd that the present run (from around 13000) is actually participated by only a few stocks (5-7 stocks, out of 30 of Sensex). The remaining stocks are sitting in the sideline. The recent good result of many other stocks failed to cheer the market in their favor. Forget about erstwhile leaders of the market like IT stocks, HLL, Hero-Honda etc. they are not only underperformer, they are being dumped.
One can smell a rat there, and question about the type of money coming to the market at recent times. Some are very new, not so reputed and entered our market through participatory notes mechanism. (I am told this participatory notes mechanism has some flows in it.) Is that kind of money jacking up those particular 5-6 stocks? Small investors beware; those fast moving stocks may look attractive but have some hidden dangers in them.
Like all small investors, who do not have access to genuine news at appropriate time, I am also expecting the market will reach 18000 or even 20000 by the year end. Probably the market operators are successful to build up frenzy in us, the small investors. The small investors in most cases, loses their hard earned money in any market manipulation.
Market, during Bull Run rarely follows the trickle-down theory, it is seen from history, it rewards the already rich and robs the poor.
Sometime it is better to be 'pessimistic',
......................................................or should I say 'pragmatic'.
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