India Running

It's been noticeable lately to those following the economic news closely that the Indian equity market has been doing exceptionally well over the past several weeks, compared to the weakness shown by the developed market.  Well, actually, it is more that the Indian stock market has not fallen to the same extent as the global market, rather than an extremely positive gain per se.

Once again, theories of decoupling have reared their heads - albeit feebly, because the decoupling theory was blown to bits decisively when all markets, including India, crashed across the globe following the subprime crisis.  It is not easy to regain lost trust, especially in the capital market.  Domestic demand, according to the experts, alone can explain why there has been such positivity in the stock market.

However, it is necessary to maintain the current performance too in order to truly state that India is a robust place to invest in.  This article - Indian Market as a Contrarian Play - that appeared in yesterday's Economic Times edition explores what it will take to keep the Indian equity market performance at its current level in the trying times ahead.  It is an instructive read for those who have been carried away by good gains.