N Sundaresha Subramanian: Would you mind a new high?

A new high used to be such a regularity in 2007 that reporters writing about the ‘new high’ didn’t need to go beyond the previous close for the ‘earlier new high’. And then the new lows started. And, then it also stopped. The market went into a terrible period with neither new lows nor new highs.

Market reporters had to begin looking for other stories, sometimes other beats such as UPA government’s umpteen and a half scandals, and worse still some market reporters had to change professions and become among other things wedding planners. The new fools never run out in that market at least.

Hope came just ahead of Diwali in 2010 and it was short-lived. The Sensex just crossed 21000, a new high. But there was never another new high since. As my old boss was fond of saying, it was a “dead-cat bounce.”

Changes in North Block and Prime Minister’s ‘animal spirits’ invoking speech brought the smiles back. Brokers already dug out their bull-stamped calculators and other forecast tools. The seeds of the new highs of tomorrow were sown in those September afternoons.

Coal scam and Kejriwal-induced media investigations on political in-laws have decayed and turned manure for the new high.

Foreign investors have been sprinkling their favours, keeping new high seeds alive.

The new high lies in the ground waiting to germinate. It does not want an unseasonal shower. It is just waiting for one last monster cloud to pass. This week the cloud is passing. It’s almost gone with the Lok Sabha clearing  foreign direct investment in retail.

“Pantaloon, Shopper’s Stop and CESC will gain 50 per cent from here by end of the year,” smsed a senior market hand. “6,200 very soon,” he added.

“End of the week?” I was getting greedy to write the newest ‘new high’ copy. It’s been so long.

“End of the month,” came the SMS.

Another short one came from another market barometer, “There is a strong buzz about the urea policy coming.”

Will it take the market to a ‘new high’? I drag him into my new high dream.  “Yes, of course,” he says, “beaten down sectors such as infrastructure and realty will rock.”

Thank god. I am not the only one lusting for a new high. An entire generation is there in the market that has not tasted the high of consecutive new highs. For their sake, and the sake of everyone who owes their living to the market, let there be new highs.

After all, a new high is the only universally harmless element in the stock market. It doesn’t hurt me, it doesn’t hurt the broker, it doesn’t hurt the advisor, it doesn’t hurt the fund manager, it doesn’t hurt the fund house, it doesn’t hurt the government which has some Rs 30,000 crore worth shares to sell.  It won't hurt growth, which gets hurt by almost anything. It won't hurt the common man, he is at a safe distance. Above all it doesn’t hurt the investor who has no place left in his portfolio to be hurt further.

I wouldn't mind a new high. Would you?