Are Indian equities most vulnerable among BRICs?
Reuters Market Eye - Has the liquidity-driven outperformance of Indian shares among BRIC markets this year run its course? Some market participants argue that the reform optimism-led buying may give way to a technical correction.
The BSE Sensex rose 26.1 percent in 2012 as of Thursday's close, outperforming all its peers among the BRIC nations.
For graphic, click link.reuters.com/quj54t
Optimism around reform measures by the Indian government has been rewarded by foreign portfolio flows of $20.51 billion this year, but on the flip side, equities have now started looking overbought to some based on technical analysis indicators, dealers say.
The Sensex is trading in the "overbought" territory, with its 14-day relative strength index above 70 for the sixth day.
- Tweet this
- Share this
- Digg this
Trending On Reuters
Data released on Friday showing a slowdown in India's economy will put the Reserve Bank under renewed pressure to cut interest rates, while Prime Minister Narendra Modi takes his time over reforms needed for a revival. Full Article