After more than 33 months, both the benchmark BSE Sensex and NSE Nifty spectacularly revisited the 20,000 and
6,000 levels last week!! However, the mood on the Street can hardly be described as “celebratory.” On one hand, in
an effort to time the market at lower levels, many retail investors were caught on the wrong foot yet again as the Nifty
jumped to 6,000 from 5,400 levels in early September. On the other hand, those few who are invested are becoming
increasingly skeptical and jittery of the current rally, as the market mayhem of 2008 continues to haunt investors.
Fuelled by strong FII infl ows, the recent rally has been primarily driven by large-cap stocks. The net FII infl ow for
September (as of 23rd of the month) was Rs20,000 crore, last seen in election-month May 2009. The same applies
to the rupee, which has strengthened to 45 levels against the US dollar. We believe that investors must change their
mindset and open up to long-term systematic equity and mutual fund investing. Ideally, investors should have a 5-
10-year horizon, with emphasis on sound companies and funds with good track records. This approach will obviate
the need to time the market, and investors will certainly not feel left out or let down.
