Santa rally eludes Indian bourses

The chart shows the S&P BSE Sensex has done rather badly this month, compared with its Asian peers. India remains one of the best-performing markets of the year and, given that investors were very overweight on Indian markets, the year-end seems to have been an opportunity to book profits. As the Bank of America Merrill Lynch survey pointed out, India is the most loved among global emerging market investors and the scope for outperformance is, therefore, limited. It is also probable that the hope rally has gone far enough and it’s time now to see some improvement in earnings. Whatever be the reason, Santa Claus decided not to dispense cheer to most Asian markets this year, except China, but he seems to have especially avoided India.