'Sensex may touch 14 k by 07'

With the sensex touching 11,000 mark and looking to move beyond, speculations remain rife about the future of this vigorously growing market.

R Venkatraman, executive director of India Infoline in a seminar said, "This is a realistic figure where strong macro fundamentals are driving the current rally in the market."

Two years on, the sensex should reach 13-14,000, he said. "There should be some amount of slowdown after the 11,000 mark. There will be a 10 per cent correction in near future," he said.

With India turning into an 'economic superpower', 'buy India' is the buzzword which is evident from the massive FII inflow likely to continue with 3 billion dollars raised in Japan alone in the last few months and Australia, Germany and others are likely to follow suit.

The themes to watch out for in 2006 are consumer spending which includes retails, entertainment, hotels and telecom, rural property which includes FMCG and farm equipment and capex cycle spending which includes capital goods, engineering, construction and power equipment.

Venkatraman said politics play a very important role and economic reforms need to remain intact.

He cautioned that high crude oil prices and US economic slowdown can play a spoilsport in the market upsurge. The FII inflows are huge and there is a risk in the interest rate increment that can dampen the market spirits, he said.