The stock market in India had a tremendous year. It is one of the outperforming stock markets in 2017 globally. The Nifty 50 index, representing the 50 largest companies on the stock exchange in India, arrived at 10,000 points in July/August of this year, and, consequently, retraced (slightly). After such a steep rise is India still worth buying or not?
The short answer: yes.
The long answer is twofold.
On the one hand the stock chart looks great. We have, so far, always looked at the weekly chart of the Indian stock market. The lower timeframe is embedded below. It is the daily chart on one year. It shows the rising channel, and the Nifty 50 is nicely trading within that pattern.
On the other hand the fundamental situation in India is great. Annual GDP growth is still +6% which is an amazing number. An even more impressive number is business confidence in India, which, according to Trading Economics, is at multi-year highs.
Our bullish India stock market outlook for 2017 fully materialized, and we believe 2018 is setting up for another great year.
