Are Indian equities most vulnerable among BRICs?

Fri Dec 7, 2012 3:46pm IST

A broker looks at computer screens at a stock brokerage firm in Mumbai May 10, 2010. REUTERS/Arko Datta/Files

A broker looks at computer screens at a stock brokerage firm in Mumbai May 10, 2010.

Credit: Reuters/Arko Datta/Files

Related Topics

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.

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

Nov gold imports seen climbing on expectation of curbs   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage