What the past 6 bull runs tell us about this market7 min read 24 Oct 2014, 08:10 PM IST
The markets are well poised to benefit from a period of double-digit earnings growth
While we boast of one of the oldest exchanges in the world, the recorded history of Indian capital markets is limited. With the opening up of the Indian markets to foreign institutional investors (FIIs) in 1993-94, Indian market cycles have become strongly correlated with global equity markets. Over the past few months, aided by a strong electoral outcome, local enthusiasm for equities has recorded a sharp rebound, with analysts and market experts predicting a multi-year bull market. This would depend largely on two critical factors—sustained earnings growth and favourable global conditions—based on an analysis of the six largest bull market rallies of the past 30 years.