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Tuesday, Sep 21, 2021
Outlook.com

Many Happy Returns

10K breached, what next for the markets? There's still steam, but caution pays. Updates

Many Happy Returns
Many Happy Returns
outlookindia.com
-0001-11-30T00:00:00+05:53
Late last year, Shaheena Mukadam, idbi's head of research, predicted that the Sensex will be in the 10000-10500 points range by 2006-end. In early '06, she quickly changed her estimates to 10000 points before this year's Budget (February 28). But on February 6, she stared incredulously at her screen as the Sensex touched the 10000 mark. "There's still steam left in this rally," she exclaimed.

In 2005, Motilal Oswal Securities, a Mumbai-based brokerage house, had projected the Sensex to be in the 8500-10800 range by 2006-end. But the firm and several others have been dazzled by the sharp stockmarket surge in the first six weeks of the year itself. "Everyone was wrong on how much liquidity there is in the market," says Andrew Holland, V-P (research), DSP Merrill Lynch.

Mukadam and Holland are right, it's all about the money. The unstoppable rise in the Sensex is due to unabated inflows from foreign institutions and the huge amounts parked with the domestic mutual funds. FIIs have invested over $600 million since the beginning of this...
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