Wednesday, May 20, 2009

Sensible Sensex?

Five years ago, just after the results of Elections-04 were out, the stock market's reaction was one of utter horror. The Sensex lost over 17 % in two consecutive trading sessions.

That initial reaction proved to be a horribly poor indicator of where the Sensex and the broader economy were headed during the following five years.

The stock market's first reaction to Elections-09 was euphoric; the Sensex went up (17 %) so fast that trading was stopped within a minute of the opening of the markets last Monday.

Let's just hope the markets got it right this time.