The Nifty has crossed the 8000 mark on news of GDP growth touching 5.7 per cent, a number last seen nine quarters back. Market pundits are now talking of the Nifty touching 10000 by next year's budget.
Though there is a consensus on the direction of the market there are reasons to look out for in the short to medium term. The move ahead might not be as smooth as it was in the past.
Here are five reasons why an investor needs to be worried about the current bull run in the market.
1) There is little doubt that the direction of economic growth has changed but the same is yet to reflect in corporate results.
Recently-announced first quarter numbers are yet to reflect the buoyancy of the market. However, the management sentiment has clearly improved from dismal to hopeful.
It is this sentiment rather than the numbers that are getting captured in stock prices. Analysts are not extremely bullish on the September quarter growth numbers.
Text: Shishir Asthana, Business Standard
Image: The bull statue outside the Bombay Stock Exchange.
Image courtesy: Reuters