why indian market is not selling off?
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Why Indian stock market is not participating in Global sell off?TRANSCRIPT
Why Indian markets not selling off?October 14 2014
Deepak SinghTwitter: smarket
There is Panic in the Developed world
S&P500 trading below 200 dma
Panic is for real – Look at CBoE VIX
US market now in High Volatile Period after long time
But Indian market has absorbed the panic fairly well
Indian market has not seen any panic so far. The response so far has been
Similar Thought crossed my mind..
But when you confront market with fact, and not opinion – you will find that market has a reason for doing what it does
Indian market is at 10% discount
Valuations are not that expensive
It’s not only Indian market…have you seen Chinese stock market
Do you see any panic/nervousness
How about Brazil?
Pro Business candidates are winning everywhere and Brazil is no exception. The investor-friendly challenger candidate in Brazil’s
presidential election has moved ahead in polls and market is excited
Here’s what happening
“The concept of fundamental economic reform across emerging markets– including in China, India, Mexico and Brazil – is gathering momentum and could cause a re-rating of the asset class as investors anticipate lower deficits, inflation and interest rates, and stronger currencies and growth in the longer term.”
.
Emerging markets were already trading at steep discount to developed world and looking ahead – there is no reason for panic as of now
Source
New Political wind is blowing: Pro Business candidates are winning everywhere
Source
Indonesia's new president Joko Narendra Modi, India’s Prime Minister
CNBC US is already calling pro business candidate Aecio Neves
Brazilian Narendra Modi
How can you forget about Collapse in Crude prices
It’s positive impact on countries like India.
Source
Why Investors have hope?
Indian market is not done with Uptrend. With so much of interest in Indian market and economy, why anyone would like to sell core
holdings?
There is anticipation of reforms in next few
months
Inflation is cooling off and Economy is
showing signs of revival
The WILD CARD: US Dollar
What if US DOLLAR index breaks out above 89? Will that be sign of Global risk aversion – Nobody knows right now
Source
Summary
www.stateofthemarket.net
Does this mean – Indian market will not sell off? I don’t know. What I am saying – Market
has a reason to not participate in Global panic as of now?
As always, there is risk in the market – there is no guarantee
www.stateofthemarket.net
Thank You
• Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers
• Chart Source: Chartalert.com
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