Indian Stock Markets might be headed for multi year bear markets

Since the last month, Indian Stock Markets were decoupled from global markets. We have seen a significant underperformance compared with other Asian markets and US and European Markets. India 's leading indices Sensex and Nifty were not moved as per the global cues, rather hold most bearish tone regarding upside in Indices. The significant under performance and decoupling from global markets might be an alarming tone for Indian investors, as Indian markets may see more underperformance like Shanghai China, where global investors were so bearish that despite of global markets liquidity, index were still underperforming. Foreign investors have shorted the China markets since long and they are making money for their bets. Shanghai Index hasn't moved up at all since last two years and stayed in long time bearish pattern. Everyone is shorting China, due to the fear of Hard Landing. Now Indian Equities and Indices might be next in line, to set up the same significant under performance, long lasting multi year bear markets. As inflation, reforms and policy paralysis, Lok Sabha election 2014, Rupee depreciation and lack of confidence in government might ignite some pull back of foreign funds. Ultimately domestic investors will suffer and the lost confidence won't be created so easily. Our advise will be to liquidate all the positions on Indian Equities as they were not going anywhere until 2014 Lok Sabha elections. News based trading and Investment will be a right strategy. Don't consider holding the long positions.
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