Foreign portfolio managers and local puntersarebettingonaratecut,easymoney,UP elections, cut in subsidy and a gradual shift in global liquidity from commodities to equitiestobuystocks.Eventhoughcorporateprofit growth is at its lowest and industrial output grew just 1.8% in December 2011 against 8.1% a year ago, Nifty has emerged as the best-performing index in the world since Januray 1. Nifty has gained 940 points, or 20.33%, while Sensexrosemorethan18%inthefirst35trading sessions of the current year to close at 5564 and 18289 on Friday. The bellwether indices were down 25% in 2011. Are we getting into a situation where excess liquidity is being created amid positive cues in the eurozone, or is it because short sellers are rushing to cover large positions?
Source: Times of India
No comments:
Post a Comment