Wednesday 2 January 2013

View- India is still in a bear market rally

 

 

 

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Indian equities and bonds have done well in 2012 and are likely to do well in 2013. However India is still in a bear market rally and unless macro factors change it is unlikely that markets will enter a bull orbit. 

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India is still in a Bear Market Rally 

India is yet to come out of a five year bear market and while 2013 could take the Sensex, Nifty, Ten year government bond and the INR higher, it is unlikely that the markets will enter a bull orbit. A sustained rise in markets requires a far stronger fundamental footing than what is present now in the economy. It is true that markets look forward and hope for the best but for a forward looking market, it is not enough for an economy to come out of a trough. The economy has to have the footing to move ahead without creating issues of inflation and asset bubbles. India is not in that wicket yet.

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Arjun Parthasarathy

Editor: Investors are Idiots.com

www.investorsareidiots.com

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Information herein is believed to be reliable but the editor of Investors are Idiots.com Arjun Parthasarathy does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author of the articles may have investments in instruments that are the subject of the articles.

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