Monday, October 04, 2010
Sensex rise and Jupiter in Pisces
Atham Njattuvela is good and it is raining well in Kerala. Other parts of India also received excellent rains.
Good monsoon means that the agriculturist's income will be up. They will be investing in farm equipments, which is good for such equipment manufacturing companies. As India is an agrarian economy, a good monsoon ensures good industrial growth. The GDP growth is expected to be 8.5%.
Jupiter in Pisces is favourable for India and the Sensex moved to 20.4 K on reports of good monsoon, an expected 8.5 GDP growth and surging car sales. The Index of Industrial Production has gone up. The market capitalisation has gone upto 71,22514 crores. This is a great Value Addition as far as investors are concerned. But then the small investors have booked profits and hence they could not exploit the current bull surge.
$19 b was invested by the FIIs so far in 2010 and the cash flow has triggered the surge in both Sensex and Nifty. In Sep end they invested 43107 crores. Simultaneoulsy the Indian Financial Institutions have sold their holdings, in order to book profits. We hope that furthur momentum will be maintained. Most brokers feel that the Sensex will create new record this Deepavali, the Festival of Lights. They maintain that the record 21.4 K level of the Sensex ( on Jan 10, 2008 ) will be surpassed within one month. Adverse factors like Global Recession and rising crude prices may halt the slide. On 10, Jan 2008, the market capitalisation crossed 72 lakh crores and this wil be surpassed easily.
On Friday, Nifty closed at 6143 and the Sensex 20,445 ! SBI and Infy crossed 3000 INR. L&T crossed 2000 !.
IIP will will the highest in these 18 months. This is another bullish factor. The good monsoon comes as a boon to consumer companies.
Not only is this phase good for the secondary market, the primary market is also rising. 4000 crores were mopped up within 2 weeks.
Machiavellis say that companies will collect about 4800 crores as IPOs and the market has been manipulated. Once the IPOs are over, the market may react sharply. More info at Stock Market Astrology
Jupiter will be moving over to Aquarius and this does not augur well for India. He will be in the 8th in India's national horoscope from Nov 1 onwards. So be careful !