India has been an outperformer as compared to global equity markets and it seems that it would continue to remain so.
Global equity fund managers need some place to hide (after rout in China and recession expectatiosn is Europe/USA) ,India is providing a good opportunity.
Another factor is sector-roation – in last two and half years , there has been a beautiful sector -rotation and that is helping our markets to stay strong .
As far as Index is concerned, that does not really show the situation of the broader- Indian markets. It is not equally weighted index and can be managed easily by managing few heavy -weight stocks.But still , we might fall in coming months . Closing below 17900 would be the first signal.
For investors, the opportunities and challanges lie in broader markets – and the journey has not been smooth. Many so-called great stocks have corrected a lot , they might remain sideways for coming weeks.
Our view is to remain on sideways with one foot in the water ( 25-30% exposure) where either growth-stocks have corrected a lot and are showing some signs of bottoming out and looking for opportunities in turnaround sectors (power, PSU banks, Pharma etc)
Would post our 3-6 months view once we get clear signals of the future trend !
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