The Hindu Business Line : Hip, hip, hooray!

THE market has pole-vaulted over the 10,000 bar, after taking a long run of God knows how many years. In the psychological sense, it is a dream come true. The universal impression is that this time around, the upswing is not a transient phenomenon representing just volatility or effervescence whipped up by speculation or "hot" money, but solidly backed by secure fundamentals.

It is fortunate that, at this juncture, we have in SEBI a regulator which, under the alert leadership of the Chairman, Mr M. Damodaran, aided by close monitoring by his team of able professionals, is keeping a watchful eye on the happenings in corporates and bourses, paying particular attention to the trends in daily cash market transactions. These are usually engaged in by day traders (60 per cent), small and medium investors (15 per cent in equal proportion), individuals of high net worth (15 per cent), foreign institutional investors (15 per cent) and domestic institutional investors, buyers and sellers (30 per cent).

India-specific funds flowing in from Japan, South East Asia and elsewhere looking for investments and funds generated from new offers (as has happened in the case of UTI and SBI to the extent of some Rs 5000 crore) and the position on futures and options likely to be taken over the short, medium and long haul by the derivatives segment (accounting for some Rs 20,000-30,000 crore) can also drive the market upward. In none of these areas has there been any noticeable feature of disturbing significance. Further, the crossing of the 10,000 mark by the Sensex has not been in a sudden spurt, but in keeping with a reasonable rate of progression.

It, therefore, can be said to reflect the real state of the economy and the uplifting surge of confidence and trust of all categories of stakeholders in the present and expected future performance of the actors in the unfolding drama. It is also in tune with the enthusiastic forecasts of the normally highly scrutinising observers here and abroad (who are by no means given to euphoric exuberance) about the certainty of India soon emerging as a global economic power.

Since nothing succeeds like success, the upbeat sentiment can be expected to feed upon itself, boosting the spirit of buoyancy across the board. This is borne out by the "feel" one gets going round the country and meeting members of the business community. There is an unmistakable zing in the air, giving rise to a soaring optimism that India can do it and has, in fact, arrived.

Why not, then, come out with a lusty "Hip, hip, hooray"?

B. S. RAGHAVAN

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