Sensex is hungry but it needs to look beyond earnings to feed itself

The results season has begun and the first signals are not encouraging. The tech and auto bell wethers, Infosys and Bajaj Auto, fell short of market expectations, signalling perhaps more disappointments going forward. And still, the market seems to be behaving as though it has drunk a new energy drink.
Up 2 per cent over the week, 4 per cent over the fortnight, 9 per cent over the month and 68 per cent over the year, the Sensex at 15,273 is hungry, no doubt. What it needs to satiate this hunger is earnings. The rupee rise has reduced the index’s prey — IT stocks and exporters are going to be losing flesh. That leaves telecom, commodities and increasingly real estate.

Opinion in The Indian Express, July 14, 2007