March of the stock markets

The benchmark indices rallied about 10 per cent in March and are on course to post their biggest monthly advance in around four years. This has been a sharp reversal of fortunes for the market, which had fallen 12 per cent in the first two months of the year due to a near $3-billion sell-off by global investors.

Further, dovish steps taken by the global central banks, have improved investors' appetite for risk, which has spurred a fresh bout of inflows into emerging markets. India has seen FII inflows of $2.5 billion in March, less than some peers like South Korea and Taiwan.

Experts believe the current rally might have a little more steam left. However, the gains might not be sustainable from a long-term point of view till corporate earnings improve.