High Alerts in the Market..
#1. PE ratio for Nifty has crossed 25, stocks are overvalued.

#2. No one is talking about the impact of GST, or they don’t want to talk because positive of GST is already factored in the market, what if it comes negative.

#3. Profitability in comparison to GDP – In developed economy it is 9-14%, in developing economy it is 5-8%, in India it is 4.8% which is the lowest in 10 years.

#4. Emerging Market – FII selects 8-10 emerging market, they keep rotating these funds from one market to other.

#5. Cash holding of MF – It is increasing now because MF are not able to understand where to invest in spite of fund flow.

#6. Forex Reserve – India’s forex reserve is at peak level, RBI accumulate dollars only when they feel that there will be huge redemption of dollar in near future.

#7. Gold import increased 3 times ($3.8 bn from $1.2bn) compare to last year while funds are pulled out of Gold ETF – Why such things are happening is because someone is accumulating Gold in a big way, are they seeing some risk in financial world.

#8. Rally is narrow based it is not broad based rally – Only 10 stocks are actively participating and rest 40 are not participating. Fear factor or RSI is all time low in 24 years.

#9. Credit Rating of India is BBB- means moderate risk.

#10.Geo political tension.

#11.FII sold $345 mn in Apr 2017


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