The major Indian equity indices continue to hover close to their record high, and there is a widespread belief in trading rooms that they will cross over into new territory before the end the calendar year. Such optimism is in sharp contrast with the widespread pessimism that gripped the markets as recently as August.
The momentum in recent weeks has been truly astonishing, a sign of how quickly the mood has changed in the financial markets, if not in the real economy.
The benchmark Sensex was at 17,905 points on 21 August. It rose by 1,886 on 2 September, or in nine trading days. The next 1,000 points were scaled in just three trading days. It took a further nine trading days for it to reach 20,646 points on 19 September. The pace of change has slowed since then.