(Bloomberg) --
India's record-breaking stock market is approaching overheated levels after a victory by Prime Minister Narendra Modi's party in three state elections spurred a rally on Monday.
The Nifty 50 Index's 14-day relative strength index — a gauge of price momentum — is nearing a two-standard deviation threshold. Declines of more than 9% on average have followed in the five instances going back to 2018 when Nifty punched above this line, data compiled by Bloomberg show.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
Modi's Party Wins Key State Polls, Boosting Bid for Third Term
But, with Indian equities beating other emerging markets this year and foreign investors turning net buyers again, warning signs flashed by technical indicators like the RSI may not dissuade investors from chasing the rally.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.