Sensex maintained bullish tone with about 900 points upward move on Wednesday. The strong upward move despite negative global cues shows the inherent strength of Indian stocks and Indian Economy. Tax mop up of direct and indirect taxes till October, 2007, showed highly buyoant economy and good corporate performance. Sensex should easily cross 21600 points mark by year end and any dip in the market shall be viewed as an opportunity to pick up stocks. When sensex moved from 6000 to 12671 in 2005-06, there was a gneral feeling amongst investing public that market would undergo a correction. At current levels also similar apprehensions prevail. I strongly feel that there is no cause for market to correct amidst reports of robust economic growth and lower inflation and a reasonable PE ratio of around 25 times. Most of the Sectoral Indices are showing valuations at levels around 15 to 20 times. So apprehensions are though obvious on the basis of high numeric level of Sensex, the fears are not justified by underlying data of the most of the Sectoral indices except Capital Goods and Realty sectors. I will not be surprised to see Sensex witnessing nearly 30% CAGR in next three calendar years till 2010, that is to say that Sensex may cross 41K points mark in 2010! No other assets class shall offer such high returns except equities. There are large number of stocks outside Sensex or NIFTY which have started upmoves in recent weeks. That shows that bullish trends are gradually turning wi
