Strong cash in to the market, expectations that the new government (new??) will execute the wish list of all the capitalists and the 'fear' infused in to the short sellers have all pooled in to take the stock markets to a new range. Hopefully, the market may not crack 12k on the downside, but looks like touching 16K soon.
This rally is thus, based on BELIEF and hope rather than on any fundamentals. Of course, markets do not respect fundamentals at any given point of time. Hope the mid cap rally continues, so that we can sell of junk which we 'forgot' to sell in the last rally.
The economic growth numbers across the world seem to indicate that 2009 end will see a revival. India continues its growth on the back of government spending. Fiscal deficit is not a worry for any one as demand compression is keeping prices low. This is the only wedge of worry.
Apart from that, our GDP should clock 5% next year also, I think.