NSE Shakeout Leads To Low Valuation Ahead Of Earnings Season
The nation’s equity market in the last three weeks has recorded a mixed performance after rallying for four consecutive months to a five-year high at 45,092.83 basis in January 19, 2018 due to impressive Q3 numbers released in October. The numbers were considered good enough to reverse the two previous months of pullback, helped also be the influx of positive economic data, increasing foreign inflows and supporting activities in the last quarter of 2017 all of which boosted market and economic recovery that overflowed into 2018. So strong was the positive momentum that it wiped away what has come to be known as the January effect (when the market always closed red) for the first time in 15 years. The NSE recorded all of 15% growth in January. It is therefore not unexpected, just as in any stock market of across the globe that profit taking would happen, leading naturally to panic selling that became the order of the day. This pulled down the market in the last trading week of J...