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Market Update: Market continue to surprise
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Market Update: Market continue to surprise
Indian equities have been on a roll since day one of 2012 and after the mammoth rally in January, as per some experts, there is still a potential for the markets to move up. Indian markets have gone up by more than 20% in the last 6-7 weeks, so a correction is always expected. But when there is so much momentum and liquidity in the market than nobody is sure from where the correction is going to come. So, while the chances are strong for some correction to happen nobody can be sure about it at this moment.
Sharp appreciation in rupee, value buying by institutional investors in most beaten down sectors, RBI's hint to cut rates soon after 50 basis points cut in CRR on January 24, positive tailwinds from the Euro zone, improvement in the US economic data and Federal reserve's decision to keep interest rates at 0-0.25% till 2014 has helped Indian markets to show stunning performance in January as compared to global peers. But one of the biggest factors which have led to this rally has been the corporate results which have been far better, so far at least, and we are just halfway through the season. The results have been far better than what the market was anticipating even a few weeks earlier, so that's led to this big rally.
Many experts feel that December was really a terrible month for the markets as there was a lot of selling and now the valuations have became reasonable. It's not like a whole lot has changed on the fundamental side but investors are now sitting on lot of cash and that is the reason that they are just willing to cling on to any positive news in getting into equities right now.
Sharp appreciation in rupee, value buying by institutional investors in most beaten down sectors, RBI's hint to cut rates soon after 50 basis points cut in CRR on January 24, positive tailwinds from the Euro zone, improvement in the US economic data and Federal reserve's decision to keep interest rates at 0-0.25% till 2014 has helped Indian markets to show stunning performance in January as compared to global peers. But one of the biggest factors which have led to this rally has been the corporate results which have been far better, so far at least, and we are just halfway through the season. The results have been far better than what the market was anticipating even a few weeks earlier, so that's led to this big rally.
Many experts feel that December was really a terrible month for the markets as there was a lot of selling and now the valuations have became reasonable. It's not like a whole lot has changed on the fundamental side but investors are now sitting on lot of cash and that is the reason that they are just willing to cling on to any positive news in getting into equities right now.
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