The recent rally in Indian equities has brought a familiar question back to the fore: are markets entering a fresh bullish phase, or is this a sharp recovery driven by improving global sentiment?
Several developments have come together in a short span, ranging from the US midterm election outcome and easing crude oil prices to a sudden return of foreign portfolio investors' (FPI) buying.
While these factors have improved market sentiment, investors need to assess whether the recovery has enough support to sustain itself.
Four major developments have shaped the recent market movement:
1. US political developments and expectations of geopolitical relief