Fairytale surge: Reflections on recent highs and future considerations
In recent weeks, financial markets have experienced a remarkable fairytale-like surge, akin to bulls possessing Aladdin's Magic Lamp, where every rub summons a genie to fulfil wishes. Bulls saw their desires met, from Adani Group stocks reaching a market capitalisation exceeding Rs 15 lakh crore to Tata Technologies enjoying a dream debut. Notably, BFSI stocks rallied after a period of underperformance, and India's Real GDP soared 7.6 per cent YoY in Q2FY24, surpassing even the most optimistic economists' consensus. The saffron wave in state elections signalled political stability, instilling confidence domestically and sending a robust message to foreign investors regarding continuity in the upcoming 2024 general election.