When clear turns hazy

Just a few months ago, everything seemed very clear and optimistic. The risks were forgotten, and animal spirits were flying high. 'IPOs' (initial public offerings), 'NFOs' (new fund offers), 'futures' and 'options' were the buzzwords. All of us were waiting for the US election results as the next major global event. At the same time, we were convinced that foreign events wouldn't impact Indian markets. The DIIs (domestic institutional investors), 'unintended flows' from EPFO (Employees' Provident Fund Organisation), pension funds, insurance companies and SIPs (systematic investment plans) would keep market levels rising. Come November, just like the Delhi air quality, our vision turned hazy. Commentaries on the slowing economy, muted urban and rural demand and poor corporate results came to the forefront. Higher summer temperatures, general election rallies and the not-so-spatial distribution of rain were blamed. Globally, the US rate cut had th

This article was originally published on December 15, 2024.