Another financial year draws to a close. For investors, it was a forgettable year. While domestic investors showed sustained commitment to Indian equities, FIIs sold Indian equities for most of calendar year 2018 and turned buyers in 2019. Valuations kept moderating through the financial year and investors kept showing enthusiasm at every fall. But for some popular themes of 2017, 2018 was a forgettable year.
The new financial year promises to begin on a positive note. But that positivity is clearly driven by political sentiment. Economic fundamentals are still not evidencing a sharp uptrend. In this scenario, a strong market uptick driven by politics will need solid economic backing to sustain. This is exactly what investors are wondering about. The answers to this will emerge gradually and investing will need to wait for evidence to emerge. Meanwhile, we must hope that global markets don’t spook sentiment in our local market.