Will the Sensex create history?

The markets likely to touch the all time high of Sensex on Monday which is at 14724 can be a matter of history. It seems that the news of ‘billing rates hike’ of Infosys can add numbers to the Sensex. The world over indices is scaling new highs but here we are struggling to find buyers. There were signs of liquidity drying up in the small stocks and the mid cap story is around a few stocks and the rest are moving Southwards. On other side of the upward movement, limited to a few stocks especially the Reliance family stocks are saving the sentiment but the bumpy roads to other stocks can be seen in their movement.

The economy likely to see a considerable low growth rate in the next two quarters as the fall in the rate of growth of auto mobiles can be a first sign in that direction. The banks fund raising rates are going up day by day and the competition are building up to garner the cash rich. The banks will be forced to focus on farm lending as the agriculture growth is negative and the elections are around the corner. The rupee appreciation already hurting the leather & garment exporters, software services and other agri-exporters working on thin margins.

The effort is not to picture a negative view but to through some light on the other side, kept in darkness while beating the growth rate drums by the govt. and the analysts. After few quarters, the story of “growth rate” can become a useful paper work for the researchers but not for the common person who is struggling to survive to get two meals a day.