FE Editorial : Why is the Sensex up?
One big reason for this is that, globally, asset allocators have been in ‘risk on’ mode for the better part of the year given the abundance of liquidity flowing from accommodative monetary policy stances of most central banks. But if India is getting more flows than peer markets like Taiwan or Korea, it’s because the market is betting on an earnings recovery in the not so distant future. There are a few signs of that yet and, at an aggregate level, the quality of the September quarter numbers was undoubtedly poor, with profits being propped up by other incomes. However, a study by Citigroup showed that 43% of the companies that it tracks grew profits by 20%-plus. Moreover, in the
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