It's been raining bears at the bourses since the gong sounded for the Union budget, though the bulls are gallantly putting on a bullfight. The Sensex has shed over 1500 points in the BSE in the last ten days, with a weak sentiment still prevailing by and large. This, for some shrewd investors who are eternally scouting for an opportunity, is a buyer's dream come true. Meaning, enter at low Sensex, and exit when it hits the peak level.

The stock market is taking a cue from depressed global market conditions which is seen to be in a bear grip, mainly due to profit booking by global institutions. The same story is being replicated in the Indian markets, along with year end efforts to shore up profit positions. According to available evidence, FIIs have been net sellers, while Indian institutions have also sold steadily posting handsome gains. The bygone year has been criticized for the rapid rise in Indian stock exchange index sending up valuations calling for the red flag from both investors and financial institutions.

The fall out of the stock market upsurge has been a windfall of profits for stock market players who have not seen a surge like this before. The Sensex has shot up from around 6000 points in May 2006 to 14,000-plus a month ago. The effect of the union budget on the market is minimal, but with the booming sectors left untouched, the market is set to see a fresh bout of action shortly. The market could see a slower growth in stock indices with market investors being more cautious in emerging markets. India is expected to witness growth rates of nine per cent this year also, but the economy would witness a shortfall in food grains leading to inflationary trends. This could lead to hardening of interest rates that could pose a challenge to steep growth.

The focus on infrastructure and agriculture is bound to make a strong impact on the economy with other key sectors keeping up pace. Although the planned increase in agriculture production area will have an impact in the long run, the foresight for narrowing supply deserves credit. On the fillip side infrastructure sector will witness a boom and companies are set to make it big in this sector. The market will see a sector-wise growth, much to the discomfort of investors who have invested at high rates when the markets had touched fourteen thousand in the BSE. This year investors would be better placed taking a cue from global investors who prefer to take a charted route than take risks. The Indian markets are poised to give investors another year of profits.