Easy money lifting stocks globally

Just as the Indian market is recording fresh year-to-date highs, many global markets are at or near their 52-week or all-time highs. Putting to rest fears over a global slowdown and Brexit, the US' Dow Jones and S&P 500 touched their all-time highs on July 14. Markets in Mexico, Brazil and New Zealand followed the US markets. Indices of some emerging markets also scaled to their 52-week highs. But, despite new levels being achieved, experts suggest the global market rally could last longer.

Central banks across the globe are continuing to pump in cheap money to support growth. "These measures are yet to yield positive outcomes, and their stance on negative interest rate is likely to be upheld for a foreseeable time", says Pankaj Pandey, head of research, ICICI Securities. Consequently, money will continue to chase equities and liquidity might not be a constraint in the near term.