Don't Dismiss Indian Stock Market Rally just because you don't believe it
FIRST LETS HAVE A LOOK BACK AT HISTORY
WHAT HAPPENED :
JUNE 2013 : QUANTITATIVE TAPERING MEASURES WAS ANNOUNCED
At the same time in india inflation was soaring higher,gdp falling. IIP was in doll drums .,there was gloom and doom every where .
In june 2013 Ben barnake US FED CHIEF announced fed would begin its "tapering" program ,means cutting down the amount of dollars printing each month contingent upon the positive US data that showed unemployment is coming down and GDP is improving
we can see in the below graph in june 2013 after qe tapering was announces market came down dramatically from 6000 levels to 5400 and in august there were 2 weeks of phenomenal selling but lucky both weeks market managed tro give a come back and give close above its 200 week moving avg .This was technically a sign of selling extortion.
AUGUST 2013 : DOCTOR WAS CALLED TO SAVE THE INDIAN ECONOMY
Dr . raghuram rajan was appointed new rbi gov in august will take office on september 2013.Lot of people believe market bounced back very sharply following this news.It was one of the incredible decisions of UPA govt to appoint well know credible face that gave confidence to FIIs and india watching funds to give them the confidence the doctor might to do something to save the economy.
As the economy starts coming down rupess to went down from 44 to 54 then from 54 to 57 but in the month of june- july -aug it just took off from 57 and hit 68-69, this was the time when things were looking really scary.Then post the month of sep after new rbi gov took office rupess start to stabilize between 62-64 levels
NEW DIRECTION: NARENDRA MODI
It was almost at the same time the news started coming the chances of narendra modi becoming pm is so high.
The economy was growing sub 5% levels,psu bank is still having huge NPA problems,infrastructure remains in huge mess.Under these circumstances there came a new hope if narendra modi becomes india next pm he can fix the problems, that hope became more clear when BJP did spectacularly well in 4 state elections
You can see in the above chart Nifty was stalling at 6380 for long 6 years bcz of sub prime crisis. inflation, corruption.just before dec 2103 state election which BJp did so well market finally broke out.As stocks dont wait for results to come out the same thing happened here too. the opinion pools started coming and narendra modi as next pm was going to be a real possibility market just broke out of its 6 year resistance.
NOW THE REAL INTERESTING PARALLEL THING WE FOUND OUT : SO STUNNING
WHEN NEW LEADERSHIP COME IN
