Why Indian markets not selling off?October 14 2014

Deepak SinghTwitter: smarket

There is Panic in the Developed world

S&P500 trading below 200 dma

Panic is for real – Look at CBoE VIX

US market now in High Volatile Period after long time

But Indian market has absorbed the panic fairly well

Indian market has not seen any panic so far. The response so far has been

Similar Thought crossed my mind..

But when you confront market with fact, and not opinion – you will find that market has a reason for doing what it does

Indian market is at 10% discount

Valuations are not that expensive

It’s not only Indian market…have you seen Chinese stock market

Do you see any panic/nervousness

How about Brazil?

Pro Business candidates are winning everywhere and Brazil is no exception. The investor-friendly challenger candidate in Brazil’s

presidential election has moved ahead in polls and market is excited

Here’s what happening

“The concept of fundamental economic reform across emerging markets– including in China, India, Mexico and Brazil – is gathering momentum and could cause a re-rating of the asset class as investors anticipate lower deficits, inflation and interest rates, and stronger currencies and growth in the longer term.”

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Emerging markets were already trading at steep discount to developed world and looking ahead – there is no reason for panic as of now

Source

New Political wind is blowing: Pro Business candidates are winning everywhere

Source

Indonesia's new president Joko Narendra Modi, India’s Prime Minister

CNBC US is already calling pro business candidate Aecio Neves

Brazilian Narendra Modi

How can you forget about Collapse in Crude prices

It’s positive impact on countries like India.

Source

Why Investors have hope?

Indian market is not done with Uptrend. With so much of interest in Indian market and economy, why anyone would like to sell core

holdings?

There is anticipation of reforms in next few

months

Inflation is cooling off and Economy is

showing signs of revival

The WILD CARD: US Dollar

What if US DOLLAR index breaks out above 89? Will that be sign of Global risk aversion – Nobody knows right now

Source

Summary

www.stateofthemarket.net

Does this mean – Indian market will not sell off? I don’t know. What I am saying – Market

has a reason to not participate in Global panic as of now?

As always, there is risk in the market – there is no guarantee

www.stateofthemarket.net

Thank You

• Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers

• Chart Source: Chartalert.com

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