Last week, in this newsletter, we wrote “Next week may be volatile due to the withdrawal of 2000 rs notes..”, well – nothing happened. This was a very boring, tight ranged week where the market continued its journey towards its all time high.
Nifty 50 is up 14% over the year and like most of the rallies, this is a rally of disbelief as well. Crude is now around $76 a barrel which is a cool 35% lower than last year. These levels are good for curbing our domestic inflation and making a case for lower interest rates.
Almost everything was up this week, except Financial Services companies. Last week it was realty stocks that were top gainers and this week its the metals. Cyclicals, it seems, are having an “apna time aayega” moment. Well, a bull market in that sense accommodates a lot of sectors.
India Vs the World ⭐
India is having its moment amongst the world indices as Nifty 50 is the second highest gainer over the past 1 year, seconded only by Japan’s Nikkei. Interestingly, Japan’s Nikkei is breaking out after 33 years (excluding dividends) and is finally crossing some pretty ancient levels. Morgan Housel writes about performance of Nikkei Vs S&P 500 from a very long term context – read here.