Market Momentum

Herd mentality is a common term in the investment world to describe when most of the investors flock together in a single direction, be it bulls or bears. The direction is clear at this moment in time, with the current bull rally covering most positions, although the most popular market indicator, Sensex, is still short of its January, 2008 peak of 20,827 points, by around 25 per cent and it is expected to stay near that, as the market has hovered around the current levels for more than a month now.

This article was originally published on September 24, 2009.