Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Indian markets have been buoyant since the European Central Bank’s decision on the unlimited sovereign bond buying program announced last week and the German Constitutional Court’s nod on Wednesday for the same.
The next trigger for the markets is the possible announcement of the third round of quantitative easing, or QE3, during the two-day U.S. Federal Open Market Committee (FOMC) meeting.
The moot question is whether Indian markets are having the BIRG (Basking in reflected glory) effect based on international cues. These global triggers act as steroids which can resurrect markets temporarily but sustaining them at higher levels would require domestic cues which have been missing for a long time.