Should you follow the old market saying, ‘When in May, sell and go away’?

Markets are on a tear globally. The Sensex is up 40% from its lows and is now one of the bestperforming markets during this rally. In our previous issue, we had suggested that the market was ripe for a pullback; the levels to watch out for were 10,900, 10,600 and 10,100. In the event, we did get a pullback; the Sensex...

Time for a smaller and limited version of that discredited idea

There is a time and place for everything. Three years ago, the word decoupling was shorthand for the argument that emerging economies would outpace the growth of Western countries and, therefore, their stock markets were the place to be invested in. Indeed, all sectors of the Indian economy were booming simultaneously – quite...

Above 10,500, the outlook is bullish but how long will it take for the Sensex to get overvalued?

There were reasons to be mildly bullish after the Sensex had bounced from just under 8,100; but I certainly did not expect the market to run away like this. Last fortnight, I had said that the market was now at the crossroads. “The bounce back from an oversold position is complete but it is highly...