But in between the traders had to keep making guesses as to whether FIIs will continue to bring in more funds. The rupee turmoil added its own flavour. Looking back, it looks like the Fed decision not to hike the interest rates appears to have provided the trigger.

This is rather strange. For the Fed action can definitely provide a trigger for the US industry and its stock markets. Borrowing costs for the corporates there would not go up and new investments can be made. Investors can even hope to get a return of upwards of 30 per cent per annum on their equity investments.

The US dollar hardening against most currencies was another plus factor for those who bet on US growth rates.

But it is difficult to see the connection to the Indian stock markets. However, in as much as the FII investments have been going up in the last few days, possibly in anticipation of the Fed not raising interest rates, there appears to be a proven correlation.

The pity is for an investor, who likes to make his decision based on economic rationale, he finds himself confounded. It is not that rationale that decides the market direction, but the market sentiments. The sentiments, he finds inexplicable. If one were to find positive factors about the Indian economy, he did not have to search. They were staring him in the face. Except, of course for a few confusing signals. Like the corporate tax collections showing a high growth rate, as indeed was banking sector's advance to the industry. But industrial growth was giving out mixed signals. More importantly the commercial vehicle segment was halting in its growth. That raised doubts about underlying economic growth. The segment has a direct correlation to economic activity. And therefore a slow down in commercial vehicle sales should hoist cautionary signals in the investors' minds.

In such a scenario, if there was any logic to investment that was only the bottom up support. Stock prices were not too highly inflated.

The momentum seen during the week was marked more by infotech stocks than anything else. There was investment in pharma industry of course. Selective investments were being made.

The fact that the Nasdaq composite index managed to cross the 4000 level provided the encouragement.

But even with all that Infosys is facing resistance on the upside. But other software scrips have found favour, like SSI based on good results. Or Pentamedia Graphics as it was underpriced. Silverline moved up. There has never been any doubt as to the future direction of this company. But despite that the scrip had moved down to the level of Rs 311 from Rs 450. It is now catching up. But the catching up needed the impetus of a news about the company making an acquisition in the US.

On the other hand the investments in the pharma scrips indicate that the fund flows have renewed in vigour. Only statistics that come up later will show how much of these volumes were from traders going long.

The proposal to put scrips on the rolling settlement is going to make it difficult for traders to build up positions continuously. They would have to weight out the consequence of the outcome in the next two months.

Front running is fine as long as the white knights will come and take it off from you. But now if they do not turn up, you have a pocketful of trouble. When accumulated positions approach the beginning of the rolling settlement, there could be a stampede. And that could be dreadful. In fact this logic is what appears to have dampened he sentiment in the bourses on Thursday. But then it was swept away with continued FII investment.

Also the money market is getting tighter. The Government completing most of its borrowing programme will end up squeezing liquidity. Higher badla rates would certainly be a dissuader.

The Sensex ended up in negative territory on Friday. And the technicals indicate that it could now move down further.

In the pharma section if Smithkline Pharma has moved up it is only catching up with its earlier decline. Glaxo sure attracted volume but the price rise is modest. That shows the intrinsic value of the stock. Given that it is difficult to see it catching traders' fancy. Sure you can ride it up to Rs 493, but then that is small game. The story is not different in Pfizer. It is only Dr Reddy which turned spectacular. But this writer has clearly pointed out in his column that Reddy was likely to surprise everyone. Ranbaxy moved up. But the question here is can it sustain. Given its not so interesting performance, I wonder.

ITC is back to its baseline. HLL is staying put, not surprisingly though. Even Bhel is finding the going difficult. Volumes are not going up. Bajaj Auto has no driver. And one is not surprised of the lame performance at Hindalco counter. Given the price wars, one cannot hope the sentiment to improve. And if you saw more volume in Telco counter, it is more the rub off effect than a driven momentum. On the other hand it is the cement sector which is capable of holding investor's interest. ACC has attracted volume. But Larsen and Guj Amabuja stay put.

Take Reliance Industries and State Bank and then you get the complete picture. Seriously it is difficult to see the market moving up. The rush in the infotech sector is the only silver line in the cloud, but the silver could lose its lustre.