Sandeep Bhatia, Executive Directore and Head of Sales at Kotak Institutional Equities said,

The current market rally to continue for the next few weeks. “In this phase, right now the market will carry on its strength, but I would not want to bet that this market can sustain higher levels over 15,500 or so.”

This market is now completely driven by flows, we have seen huge turnarounds in the kinds of flows which are coming to the market, so I think fundamentally if I point to the fact that this market is expensive, its something which is well known, that’s the last thing I have said on your channel and I continue to think that this market is expensive. But right now in the last week itself we have seen lot of new buyers come through, we have seen a change in the complexion of numbers, so in this phase, right now the market will carry on its strength, but I would not want to bet that this market can sustain higher levels over 15,500 or so. Its really getting expensive and the budget was just one trigger to the market, the reality is that we are stretching ourselves on valuations, the projected GDP growth is actually going to come off for most people because of the way the monsoon has panned out. I just hope that we do more than just the 15,000 crore that the government is expecting on divestment. This country needs a significant amount of sell-off, to ensure that fiscal deficit doesn’t go beyond the levels which the budget saw at around 6.8%. So we need that to happen to put us at some stronger ground. So I will be happy if the market is range bound, the flows are telling me that the market will continue to motor up for the next few weeks.