Indian Stock Markets Hit Record Highs

Watching the meteoric rise of India’s stock markets so far this year, one can be forgiven for forgetting that just a year ago, the asset class was a poster child of the emerging market bashing.
Both benchmark indices, the Sensex and the Nifty, swooned last year on fears a tapering of asset purchases by the Federal Reserve will trigger an outflow of funds from the market, falling to year-lows in September.

But this week, India’s stock markets came back from Independence Day celebrations roaring to new life-time highs, as local and foreign investors continued to pile in their money, on hopes the economy will stage a sustainable turnaround.

The Sensex and Nifty have soared some 25 percent so far this year, and analysts are calling for more gains to come.

Saurabh Mukherjea, CEO of institutional equities at Ambit Capital, expects stocks to run up another 15-20 percent by the end of India’s fiscal year in March next year.

“That has been our call since May this year, and we standing by that view. India’s economy is turning, it’s coming out of a downturn, fiscal and monetary policies are on the right path, and that’s generating confidence in the markets,” he said.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza