posted at 03:51
Author Name: Mike Bird
India Stocks Hit New Record
S. President Barack Obama smiles as he hosts a meeting with India's Prime Minister Narendra Modi in the Oval Office of the White House in Washington September 30, 2014India's Sensex stock index is climbing to record intraday highs early Thursday. This might seem a little surprising: the US has just announced the official end to tapering, meaning no more new flows of QE. India's stock market was one of the emerging markets hit hardest by the mere suggestion of tapering in the first place. Indian equities seem to be going from strength to strength. The line just before the beginning of May is where the Sensex sat just before it became clear that Modi would not just win the mid-May Indian election, but that he would storm home with a large majority. The Wall Street Journal has done a great timeline of the Modi-driven events that have lifted Indian stocks. Recently, announcements on diesel price deregulation and the continued success of the BJP have cheered markets. If Modi starts to disappoint, the expectations investors had for significant earnings growth are going to sour quickly. Once you're up on a pedestal, there's much further to fall.

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