Wednesday, 23 October 2013

Sensex inches away from 21,000: Is it seeing a villain in Raghuram Rajan?

The Sensex is at a kissing distance from its all-time high of 21,004. Any day, any hour, India’s bellwether index can cross that mark. 

But the index is shying away from this historic milestone. 

Today, it is trading with losses of up to 270 points. 

All the major domestic and foreign factors having been taken care of as of now, the only major macro event from where the markets pick their next cue is the RBI’s policy meet on October 29, say analysts. 

“I’d say that the concerns that most of the emerging markets and CAD-challenged countries like India faced due to the fears of tapering, have receded. This has been the reason why positive trade has sort of played out in the emerging markets over the last few weeks; and we (India) have been a beneficiary of that. Also, concerns on the debt ceiling have sort of receded ... So broadly, these have been the reasons why the emerging markets, in general India, have done particularly well,” says,Ajay Bodke Head-Investment Strategist & Advisory, Prabhudas Lilladher. 

Till now, it was exclusively the fund flow from FIIs that was being credited for the market rally. But now analysts say it’s a broad-based momentum. 

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