Monday, 28 October 2013

Economic Times Of India

India's market rally is not sustainable:-


The recent stock market rally and a gush of dollars by foreign institutional investors in the Indian market have surprised quite a few investors and traders alike. Also, not all FIIs are convinced about the rally. Tai Hui, managing director, chief market strategist - Asia, JP Morgan AMC, told ET in an interview that the recent rally may soon run out of steam and a correction could follow. 



The Sensex and Nifty are at a three-year high. Do you think the current rally is sustainable? And where do you see the Sensex headed by the end of the year or during the first quarter of 2014? 

Tai Hui: Part of the market rally in India is due to a delay in the US Fed tapering and the attractive valuations over here. However, the macroeconomic climate is yet to make a convincing turnaround. We are cautious on India as the market looks for more clarity on the political and economic fronts. Thus, the current rally may not be sustainable, and market will correct in the next three to six months, or even earlier. I do not want to predict any level for the index though.

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