10K and on...

Great day yesterday ahead for the stock markets with the bse index touching 10k. but what is in store? just a quick analysis.

The markets reached 10,000 on a day when not many people expected. after last weeks correction most of the predictions were that we might be in a correction mode this week as well. To add to this sentiment was theincrease in oil prices and yet another spat between the ambani brothers..

so where are we heading this year.

The next couple of months till the budget is going to be volatile. but there should not be any surprises in the budget this year since 4 states are going for the election. already the petroleum minister has said that there will not be any increase in kerosene and lpg in the budget (earliest indication of a populist budget).

the mutual funds have collected nearly 10,000 crores from New Fund Offers. Franklin Templeton Prima Fund has stopped accepting new applications since they have enough funds.

the Q3 results have been pretty good across different sectors.

these factors and many more will have a positive effect on the index.

the worrying factors are increase in oil prices, problems in reliance, increase in lending rates of banks, stretched valuations of the bse and nse indices as well as the companies and the general pre-budget flutters.

considering all these factors, this analyst feels that the market after a correction should stabilise around 9800 to 10,300 before the budget.

sectors to watch this year
cement, infrastructure, fmcg, service industry (incl hotels, travel and tourism, IT, financial services).