In my last post we looked at China’s Shanghai Composite and discussed the issues there. With respect to another emerging market, India, we can see a performance which has been been dramatically better by its benchmark since 2009.
In fact, the Bombay Sensex is not very far from all-time highs, as you can see on the monthly chart below.
Nonetheless, shorter-term timeframes indicate that bulls have had trouble holding above 20,000. You might argue that this index has been churning of late, and the potential for multiple tops to be forming on a long-term basis is there. If so, rejections away from multiple tops are notoriously violent, seemingly coming out of nowhere. You can be sure emerging market bulls do not want to see India, easily the strongest BRIC, lose its luster.
EPI is the liquid India ETF that trades here to observe.
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Thanks, Chess. Made me compare the BSE’s performance with the $SPX, and I see over the past few years there’s been a positive correlation, though the BSE has been more volatile.
http://stockcharts.com/h-sc/ui?s=$BSE&p=W&yr=3&mn=0&dy=0&id=p41268988545
Not sure how any influence of the dollar or rupee here, but I didn’t see anything significant impacting $BSE from either currency.
good stuff, thank you