Market Prediction: If Sensex crosses 11k, Markets can regain confidence.
The stock markets are going through the bitter pain due to the unpredictable market conditions where companies are announcing major cost cutting initiatives and stalling new project initiatives. Some of the market Industries would bounce in action owing to their immunity to the recessionary environment. There include the Entertainment, Consumer goods, Sugar, etc.
Of course these alone could not bring up the market. But collectively, if the markets are able to pull off and breach the 11k mark, then it would be the good news. As the confidence in the market grows, so will the willingness of consumers to spend.
This action will influence investment in Mutual Funds, and other allied products. The only demand for Mutual Funds today is for tax saving purpose where every tom, dick and harry are running here and there to make sure they get enough of these Mutual Funds to save tax.
The interest of a common man now rests on the confidence in the Markets. As it is said in the heading, if Sensex manages to breach the 11k mark, then Markets will find more confidence in the Markets and the pessimism that currently is seen would get diluted.