It has been a roller-coaster ride so far and the trend for the rest of the year suggests the same. The first quarter of this calendar year saw a 24 per cent dream run in the benchmark indices on expectations of the interest rate cycle peaking out, policy action by the government and attractive valuations. The argument was that &lsquo;most of the negatives have been discounted&rsquo; and, thus, we could see the markets rallying sharply on any hint of optimism. Foreign institutional investors (FIIs) seemed to be the smart ones pouring in nearly $5 billion.

The pain will last much longer

Business Standard

After a 21 per cent run so far this year due to unabated liquidity flow, markets paused for two weeks in a row, with a cut of close to five per cent. Data showing a slowdown in gross domestic product (GDP) growth in the third quarter spooked investors, while macroeconomic worries arising from high oil prices also weighed on sentiments.

Ambareesh Baliga

Ambareesh Baliga

Page 2 - Ambareesh Baliga

The pain will last much longer

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