Most evidence from research on financial markets suggests a lack of correlation between economic growth and equity returns. Indian markets supported this hypothesis well in calendar 2012. While most emerging economic data pointed to a continuous deterioration, equity markets continued to rise. This was accentuated after September 2012 when the government began to demonstrate political will and re-initiated the stalled reforms process. In December 2011, most people would have forecast a negative return for the coming year. Instead, we are looking at 25% gains for CY12, driven by FII inflows, even as domestic investors have been cashing out. Corporate profitability through 2012 has been substantially low with a stubborn, high interest rate regime. But the markets seem to ignoring all the facts. Stock markets tend to discount the future and FII behaviour seems to be reflecting that.
My Best Pick 2013
Torrent Pharma and Balkrishna Industries have a decent return on equity history
Summer wine and salad
Kishore Singh - January 19, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Every crisis is an opportunity, if you are on the right side of equities
Samir Arora - May 04, 2021
Viraj Mehta trusts the toughness and bounce of a company that has seen many trials
Viraj Mehta - May 04, 2021
Safir Anand spots a mid-sized company with the right chemistry and catalytic circumstances
Safir Anand - May 07, 2021