Stock Market BSE Sensex Becomes Adult (18000+)

At 18, you can blame it on the raging libido. Boys may have to make way for men as Sensex hits a record high of 18,280 on the back of eye-popping rallies in Reliance & Reliance. From here on, it's no longer for the faint of heart.

At the height of the dotcom mania in 1999-00, the easiest way to maximize returns was to buy into any stock with the suffix ‘Software’ or ‘Technologies’. Eight years on, the same seems to hold true for any stock with the prefix ‘Reliance’, given their baffling run-up over the past one month.

As the benchmark logged its highest single-day gains in absolute terms on Tuesday to race past the 18,000-mark, factors like politics, valuations and earnings appear to have become non-issues overnight.

The only thing that matters for now is liquidity and there is nothing to suggest the tide could reverse. In less than three weeks since the US Federal Reserve cut rates, FIIs have pumped in a net of $5.4 billion into Indian equities. According to provisional data, foreign funds bought over Rs 1,400 crore worth of shares on Tuesday.