There appeared to be a euphoria over an IMF remark . The BSE Sensex surged as much as 1.96%, or 567 points, intraday to hit a high of 28,829.29
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http://economictimes.indiatimes.com/articleshow/45959422.cms? http://economictimes.indiatimes.com/markets/stocks/news/sensex-hits-fresh-highs-after-imf-said-india-to-overtake-china-as-worlds-fastest-growing-economy/articleshow/45959422.cms
Wealth managers are advising clients to hold on as they think India is destined for higher climbs.
While India is a good chip, over enthusiasm on mere sentiments seems to suggest sentimental factor rather than real fundamental factors. A 25 bp cut is already factored in and the fall in oil prices may give a latitude to the fiscal authorities. Mumbai however seems out of sync with others in its runaway rise. IMF had trimmed its growth forecasts for Europe, China and Japan. Indian investors expect FIIs to come in and that explains the exuberance. However, this may be a temporary. Markets which grow vertically are not entirely safe markets. Mature markets have both steady rises and steady falls. Sentimentalism and herd instincts alone do not make a bull wave.
A good time to book profits?
Views expressed without any risk or responsibility.
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