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Nimesh Kampani
Chairman and MD
JM Morgan Stanley

In the immediate term, the Sensex may see a correction of 200 points. However, the undertone is very bullish and the valuations are still not stretched.

The markets are trading at 12 times FY06 earnings and should see a 40-50 per cent jump in the next two to three years.

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Nishid Shah
CIO,
Birla Sun Life Mutual

Oil price is a concern. Investors have to exercise caution as prices of some scrips in the mid- and micro-cap segment have run up too fast.

While large-cap stocks still look reasonably priced, mid-cap valuations are more demanding. Oil prices have already crossed $59 a barrel. So one cannot avoid an impact on product prices and inflation.

This could lead to a possible rise in interest rates, in effect, impacting equity prices.

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Abhay Aima
Country Head - Private Banking,
HDFC Bank

Pessimism is cause for optimism. While Sensex at 700 is reason to cheer, the advance-decline ratio is not favourable with declines outstripping advances 6:1.

This means investors are still not exuberant, there is general pessimism. It would have been worrisome if people were talking about 9000 levels right now.

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Bobby Surendranath
Vice President,
Equity Standard Chartered Asset Management Company

Valuations are reasonable. Even though markets are at an all-time high, valuations are still reasonable. Considering that historically market valuations (price-earnings ratio) have moved in the range of 10-25, current levels of 14 time earnings do not look expensive. In the long term, prices will be driven by GDP growth.

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Ramesh Damani
Broker, BSE

Today's all-time high is a good psychological boost for the market. The Sensex may sustain at higher levels as liquidity is shifting from mid cap to large cap stocks.

As far as Reliance group stocks go, today's gains were on the back of emotional outpouring by investors.

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Deven Choksey
Managing Director
K R Choksey Securities

Overall the market looks positive and if the Sensex manages to sustain at the current levels, then it is headed towards 7200 levels.

Smart money is again chasing large-cap stocks and amid intermediate corrections, the frontline counters will drive the markets up."

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Mihir Vora
Vice-president, head equity,
ABN Amro MF

The stock market may witness volatile trade in the short term because of global factors. However, in the medium to long term, the markets look positive. Valuations are still not at their all-time peak and fundamentally there are sectors and stocks that will outperform.

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Rakesh Jhunjhunwala
Investor

Personally, I feel the direction is upwards. The 7000-level for the Sensex is just another figure. Over the medium to long term, domestic money will fuel the rally.