SENSEX SALUTES GANESHA

Mumbai: On a day when the collapse of a foot-overbridge in the national capital resounded around the world, there was considerably more uplifting news from the financial capital. Two days after the beginning of the 12-day Ganpati puja, the BSE sensex had crossed 19,000. It touched a new 32-month peak in intraday trade on every following day. And on the penultimate day of the festivities in honour of the god of good fortune and prosperity, Dalal Street once again breached the 20,000 mark.
    It took the sensex only seven trading sessions to go from 19,000 to 20,000. It is 32 months since it was last at 20k—on January 17, 2008, just as the tsunami of the US sub-prime crisis began submerging global markets. Not to be outdone, the NSE nifty also crossed the 6,000 mark on Tuesday, a new high since January 2008.
Buy, Sell Or Hold?
    Amid the cheer, many investors are also starting to feel nervous. Is the market overheating? Is there a correction coming? Should I book profit and sell now, or hold on? Questions abound. TOI talks to market experts and fund managers to figure out the best strategy for retail investors. P 27 
THRILLING 20-20
    The sensex scaled Mount 20k on Tuesday after 32 months. It was last at this level on Jan 17, 2008, just as the global financial crisis began to hit India
    Total investor wealth now 71.4 lakh cr, 2.2 lakh cr more than on Jan 17, 2008. But it's 3 lakh cr off BSE's record market cap of 74.4 lakh cr on Jan 7, 2008 On October 27, 2008, sensex hit lowest intra-day mark of 7,697 after touching 21k. Since then, total investor wealth of 44.8 lakh crore has been created.
FIIs have pumped in net $33 billion
Since Jan 17, 2008
Rupee has fallen 16% against dollar to 45.6 from 39.31
Domestic gold prices have zoomed 70% to 19,100/10 gm from 11,250
International gold prices have jumped 45% to $1,282/ounce from $883
Crude oil prices have dipped 13% to
$78/barrel from $90
Among major indices, only Brazil's Bovespa (up 20%) has outperformed sensex and nifty. China's Shanghai Composite is off 50% from January 2008 levels. Dow Jones is down 12%, Nikkei 30% and FTSE 5%
$22bn
Net FII inflows since Jan 17, 2008
$2bn
Net MF outflows in same period More positives this time around
    Ironically, though these landmarks were attained during the city's most popular local festival, the run-up was almost solely driven by inflows from foreign funds.
    On Tuesday, the sensex opened firm and crossed 20,000 within minutes, as expected by the majority on the Street. Profit-taking at higher levels pulled it back a bit but an end-of-session rally helped it close at 20,002, up 95 points over Monday's level.
    The rally could help bring more retail investors to the market, brokers and dealers pointed out. After all, since its most recent low of Rs 26.3 lakh crore in March 2009, investors' wealth has gone up by about Rs 45 lakh crore with BSE's market capitalisation now at Rs 71.4 lakh crore. In dollar terms, at $1.6 trillion, India's market cap now exceeds even markets like Germany and Australia, both at $1.3 trillion and Switzerland, at $1.1 trillion now, according to Bloomberg data.
    In the global pecking order, India is currently ranked eighth, closing in fast on markets like France ($1.7 trilion) and Canada ($1.8 trillion).
    The northward journey of the sensex is also attracting attention in Delhi's North Block. Calling the index "always a little bit unpredictable'', finance minister Pranab Mukherjee on Tuesday said he was happy that for the first time after January 2008, it has crossed the 20K mark. Finance secretary Ashok Chawla said although the index's rise reflected investors' confidence in the economy, the ministry and market watchdog Sebi were keeping a close watch "to see if at any stage there is any sign of overheating, which we don't find at this moment''.
    Behind the euphoria on the street and reassuring voices from the government, retail investors, who have not forgotten the harsh lessons of 2008 and 2009, are asking "Is it different this time?'' The answer is tilted more towards the positives than the negatives, say market players. "Firstly, the corporate sector has grown about 30% since the last time the sensex had crossed 20K. So scrips are cheaper now,'' said Abhay Aima, head-equities and private banking, HDFC Bank. "Secondly, the Indian economy is showing good growth. And lastly, there is no euphoria among domestic investors, but it's there among foreign investors,'' Aima added.