Big Sensex rally in 2016 unrealistic

The rally that began in the Indian market when Raghuram Rajan took charge of the Reserve Bank of India (RBI) in September 2013 lasted until March when the Sensex hit 30,000 points. The first 12 months of this rally were largely driven by foreign institutional investors (FIIs) as they loaded up on India in the run-up to the 2014 general election and for a few months thereafter. However, by the early months of 2015, FII equity inflows began to peter out as corporate earnings growth stagnated.

This article was originally published on January 04, 2016.