Despite deteriorating fundamentals of the Indian Economy amidst CBI raids on Industrialists, the Indian StockMarket is Rising and is inches away from the all time high. A simple analysis of the performance of stocks and the contribution to the market movement over the past 14 months (ever since the Paralysed Government started its reforms program) shows that the bulk of the market’s performance has been driven by stocks that have very little to do with India. In fact, the sharp Rupee depreciation (9.8% over this period) is one of the prime drivers of the performance of companies with overseas or US Dollar revenues and earnings; these stocks have largely contributed to the strong market performance.
After a brief period of out performance in the immediate months after the (more…)