Thursday, May 13, 2004

Where are the markets headed?

Elections were anticipated to be the most important event for our economy in the recent times. Even the FIIs pulled out lots of their money from the capital markets in the last few days so much so that the market cap in the indian capital markets was eroded by a stupendous Rs. 55000 Cr!

Come election counting episode and much like the later exit polls predicted, the NDA is seen to be taking a back seat in the results! The markets that slumped yesterday regained strongly with Nifty going up by 25 points and Sensex going up by around 100 points!

I think all this points to the fact that the current capital market scenario in India is characterized by strong fundamentals of the companies listed there, good regulatory environment put in by SEBI and positive economic outlook for India. And, post-Elections, it's going to be business as usual. I also feel there's less chance of operator-driven hype / bubble than of fundamentals-driven bull run.

Whaddya think?