The emerging factor in Indian markets

Besides macro-balances - current account and the fiscal gaps - of a number of EMs have shown remarkable improvement since the taper tantrum of 2013

premium

The brokerage said that domestic flows may not be enough to protect India from any global sell-off, especially in large-caps. It added that analysts’ estimates of a sharp earnings bounce-back doesn’t give a true picture of growth concerns

Abheek Barua

5 min read Last Updated : Mar 08 2019 | 2:11 AM IST

Where are Indian markets headed in 2019? The stock answer is that it all depends on the election outcome. That might be an oversimplification. Markets move in packs and India’s fate is tied to that of emerging markets (EM). If EMs fall off the investment map, India is unlikely to produce high asset returns even with a favourable election outcome. On the flip side, a sustained EM rally could set a floor for our local markets even if the political outturn disappoints.

After a weak first nine months, EMs picked up in November last year. There was a rally across

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