Economy

Sensex nearing 19,000 mark

Sensex
Sensex

This is sensational at the same time scary. As the saying goes “the higher you go, the harder the fall “. India’s Stock market index today closed just 150 points short of the 19,000 mark. This is happened within few days of it crossing 18,000 and few weeks after crossing 17,000 mark. Though the fundamentals of the Indian Economy now is doing good, I am not sure it can handle so much money coming in so fast. Now any bad news that can affect the sentiment of the investors either internally like fall of this government or externally, will likely to trigger a huge fall. Such a fall can wipe out few hundred thousand millions in days and push into a burst. This scene is not very different in other Asian markets, everywhere fund is pouring.

On top this, Rupee is appreciating day by day. From Rs.44 a year back it has reached Rs.39.5 and is heading quickly to Rs.38. This is making Indian Products (whether it is Leather, Garment, ITES and to lesser extend Software) unviable in abroad markets. And Central government is merrily encouraging the rise, as it helps them to buy oil with lesser rupee. We can’t also blame the government has their Left coalition partner are giving them no room to increase the Petrol Prices, inspite of oil is at an all time high of $85 per barrel.

One thing is certain – for everyone in business and money markets, challenging times are ahead soon.