Widely read:
On Friday, US stocks rallied, thanks to the monthly payroll data. In fact, Standard & Poor's 500 index touched a new high. This was all on the back of the latest jobs report - with better-than-expected job additions in September and a surprise upward revision in August data.
The yen has fallen to the lowest in 2 months against the euro.
While the global scenario looks good, India is facing no dearth of liquidity. Overseas investors have pumped in more than US$5bn in the cash market over the past 11 trading sessions. The Sensex at 18,000 looks inevitable.
But the political drama could give the market a few jitters. And going by Sonia Gandhi's words against the Left parties, an early election seems unavoidable.
Besides global liquidity and politics, another factor will affect the markets this month: The second quarter results. Starting this week, the Q2 results will begin to flow.
According to newspaper reports, brokerage firm Motilal Oswal predicts that Sensex companies' revenues would only grow at 16%, compared with a 27% growth in the April-June quarter and an average of 26% in the last 9 quarters.
Infosys will announce its results on October 11. Let's wait and see!
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