Sensex blasts past 13K

Benchmark stock indices vaulted to new highs on Monday, driven by a heady cocktail of strong corporate earnings, a rapidly growing economy and relatively stable crude oil prices.

After the vacations of Diwali and Eid the market is again at its full fledge. Sensex finally crossed the psychological mark of 13,000.

The rise in the market is due to the positive result of most of the company in their second quarter result. The economy is growing and the government is also stable. So there is no threat to the market.

But the rise in sensex is not reflected in mid-cap stocks and small cap stocks. So the Sensex is not showing the actual picture of the market. But market is expecting a boom in mid cap stocks.

There has not been a correction in the market for a long time. So a huge correction is due to the market. It is one of the reasons which is keeping the retail investors away from the market. The retail investors are cautious as they have incurred loss when the market crashed in May of this year.

The present rise in the market is due to increase in foreign funds which stood at $6.3. It is a 38% rise in 2006. It has increase liquidity in the market. It is the right time for retail investor to sell their stocks rather then invest further.