Is the Indian Stock Market Rally Over? 75% Liquidity Pool Exhausted!
There has been a dramatic improvement in market liquidity, especially since June 2023, which in turn has helped drive one of the strongest rallies of recent times in equity markets around the world. The NIFTY-50 in India rallied almost 20% during the course of 2023, and this raging bull run in equity markets is showing no signs of slowing down in 2024 either.
However the source of liquidity that’s driving this on-going rally is not the same this time as what they traditionally have been. Equity markets have historically witnessed liquidity-driven bull runs typically during times when global central banks, especially the Fed, are in “money-printing” mode. However that’s NOT the case right now... Fed has in fact been conducting Quantitative Tightening (QT) and cutting liquidity since June 2022! Then where are equity markets deriving liquidity from right now?
This is exactly what I discuss in the video below. It’s critical to understand the source of liquidity that’s fueling the on-going rally, because only then can we make an objective assessment as to how long this new source of liquidity will last, and by when the on-going rally can potentially run out of steam!
Watch Full Video on YouTube:
HOW LONG WILL THIS ON-GOING INDIAN STOCK MARLET RALLY LAST?
Read a Blog: Market Timing Using Nifty’s PE Ratio
