It is a very ,very crazy market, we fall hard and we come back fast!
We are in the midst of a very strong bull market and sometimes there are macro reasons to take some money off the table. So yes, there was fear about interest rates hardening globally and to some extent even locally and that was the reason for the market investors to take some money off the table which got coupled with some aggressive FPI selling and also some ETF redemption as well.

Over the last two months, there have been outflows from many emerging markets but we have been beneficiaries of very strong inflows as well. There is this continuous tussle between liquidity versus valuations and sometimes the liquidity part of the segment wins but over a longer term, valuation is very important. I still believe that analysts are behind the curve. We have seen the kind of upgrades given post Q3 numbers. My take is that as long as analysts are behind the curve, we continue to remain positive and bullish. The markets have not yet discounted the future. So, sometimes we will have these bouts of selling but it is time to just stay invested in the chosen stocks and sectors.

Markets move up in anticipation of good news. When the actual numbers and the earning upgrades start kicking in, wouldn’t markets stop climbing, having already moved up in anticipation of the earnings recovery?
Absolutely. That is what I said. So far, the analysts are behind the curve, we continue to remain positive and bullish. The markets have not yet discounted the future. So, sometimes we will have these bouts of selling but it is time to just stay invested in the chosen stocks and sectors.

Markets move up in anticipation of good news. When the actual numbers and the earning upgrades start kicking in, wouldn’t markets stop climbing, having already moved up in anticipation of the earnings recovery?
Absolutely. That is what I said. So far, the analysts are behind the curve and a lot of upgrades are still coming in. The market has not yet discounted the kind of upside potential that various stocks have and that is the reason why post the results, we have seen the markets holding out reasonably well.