Click to play videoNew Delhi: Sensex on Monday gained more than 700 points while the Nifty closed up 180 points. It was on October 7, 2008, that the Sensex was over 12,000 points but by the end of the month, it sank to 8,700 point, a fall of over 3,000 points. Since then it has been in a bear grip.
Sensex was in the 9,000s in January but sunk to a new low of 8,160 in March. But after that it has been a hard climb and closed over the 12,000-point mark on Monday.
So has the bear been banished or is it in hibernation?
"The fundamentals don't justify where we are. We have got uncertainty... major events around the bend which no one is able to guess both political and local uncertainty," said Sanjay Dutt of Quantum Securities.
Historically, markets in May have rallied in an alternate pattern over the last 10 years - up one year, down the next.
If the pattern holds true, 2009 will see a rally but analysts say the rise could be short-lived if elections throw up a fractured mandate.
But if the result is a clear one, favouring either the Congress or the BJP, it could provide a support for markets to gallop again.
"If the momentum continues upwards and post election results if you have stable government formation, you will find many analysts expectations changing upwards to justify the momentum," said Krishna Kumar Karwa, MD, Emkay Global Financial Services.
It took the Sensex 133 trading sessions to come back to 12,000 and it'll be a long trek to the glories of 21,000 point that it had hit just 15 months ago.
(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)
More on IBNLive Right Now
TOP NEWS
MOST SHARED
PHOTOGALLERY
