Sensex may touch 19000 mark

When BSE (Bombay Stock Exchange) Sensex closed at 21206.77, its all time high on 10th January 2008; almost every one was saying that this market rally will continue and touch 25000 -28000. But in the same year on 20^th November 2008 the NSE Nifty closed at 2553 points while BSE Sensex closed at 8451 points, its lowest since 14 November 2005.

This obviously created panic and every body was saying that the BSE Sensex will touch 6000 but then market started recovering after 12 March 2009 with Nifty touching 4700 and Sensex 16000 points on August 4, 2009.

With the improved market sentiments several companies are raising funds through various routes such as IPOs (Initial Public Offering), QIPs (Qualified institutional placements) NCDs (non convertible dentures) etc.

But now stock markets are going down again on concerns of poor monsoon rains that have pushed India’s domestic-demand-led economy to the brink of drought, putting pressure on food prices and energy supplies and imperiling growth. Between the start of the monsoon season on June 1 and Wednesday, rainfall was 29 percent below normal.

In such a gloomy situation when there is no clarity or option people turn to astrology to find answers. So the questions few of my friends ask, when will the market improve? Should we invest now? Do stars indicate anything? etc etc.. Some times just to pull my legs! I have no problem with that.

However, as per my own wisdom there are definitely astrological reasons. For example, from June 15 to July 13 BSE Sensex lost about 1800 points. The BSE index closed at 15237 points on June 12, 2009 and from then it was down to 13400 points on July 13, 2009 for exactly one month. As per astronomy Sun moved to Gemini on June 15 while Jupiter turned retrograde (backward movement) in Aquarius sign and as per astrology this is what caused investors’ sentiment turn a bit negative! Jupiter will turn positive in December 2009.

From mid of July Sun as moved into Cancer and BSE Sensex moved up to 16000 levels on August 4, 2009 but this positive momentum may not continue particularly after mid of August due unfavorable planetary positions. Jupiter in its backward journey has moved to Capricorn on July 30, 2009. Which means market sentiments may weaken further in days to come and the share market may go downwards.

Mid of August onwards Sun is transiting in Leo along with Saturn and may not be favorable for markets including government, government owned institutions and companies, political leaders, people in higher authorities and masses in general.

Big Change

On September 9, 2009, Saturn will enter Virgo sign of Indian Zodiac and will stay in this sign for two and half years. Which means the planet of justice will influence the food & beverages industry and grocery business bringing delays and scarcity. The other businesses which may also be impacted are- work market, insurance, entertainment, art, advertising & goodwill values, maritime, shipping, water supply including everyday communication - short travel, internet, mail, phone, media and lower education. Stock markets may move forward quite slowly in the next one year and may touch 19-21k points before Dec 2011.

Challenges Ahead
Returning to a high growth rate is the greatest challenge facing India, with a weak monsoon making the task harder, but the economy may improve by year-end, Prime Minister Manmohan Singh said in his Independence Day speech on Saturday.

Economy Outlook
Finance Minister Pranab Mukherjee said on Tuesday he expected growth in 2009/10 to be over six percent, as forecast earlier and in line with a central bank estimate, despite the monsoon shortfall. Low rainfall has slowed the refilling of India's main reservoirs, threatening the supply of hydro-electric power which accounts for a quarter of India's generation and reducing availability of water to irrigate winter-sown crops such as wheat and rapeseed. Farm minister Sharad Pawar said on Monday that India needed to increase the planting of winter-sown crops and improve irrigation to make up for the damage to farms.