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.
Trending On Reuters
Greece's combative finance minister resigned on Monday, removing one major obstacle to any deal to keep Athens in the euro zone after Greeks voted resoundingly to back the government in rejecting the austerity terms of a bailout. Full Article | Greece a flashpoint for Europe?