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
- Plague in Madagascar has killed 40 people out of 119 cases -WHO
- Widespread flooding ahead for snowy western New York: officials |
- U.S., Iran discussing new ideas to break nuclear impasse - sources
- Pakistani family sentenced to death over "honour killing" outside court
- Video streaming service Aereo files for bankruptcy
Prime Minister Narendra Modi has a long list of pro-growth measures to implement over the next four months, but time may have already run out to breathe enough life into the economy to meet the tough 2014/15 fiscal deficit target without cuts. Article