Moneycontrol
Last Updated : Jan 29, 2018 11:14 AM IST | Source: CNBC-TV18

Market rally more global than local; traders have to party along: Udayan Mukherjee

The current rally in the Indian market is not a pre-Budget rally but is far more global than local, says Udayan Mukherjee.

CNBC TV18 @moneycontrolcom

Udayan Mukherjee of CNBC-TV18 is of the belief that the currently markets globally are in a classic phase of melt-up and anyone taking a contrarian bet is going to get burned badly. So, traders have no option but to partly along.

"Only time will tell us how and when it will stop but to take  a preemptive strike against is absolute suicide," says Mukherjee.

The market rally seen in our market is more because of the global rally, says Mukherjee. Moreover, the dollar index breaking down could also  be the genesis of further momentum in this melt-up and if that happens then one could see further melt-up happening in the emerging markets and commodity space, adds Mukherjee.

The combination of dollar break down along with talk of infra package in the US post the tax package might fuel the momentum, says Mukherjee.

Mukherjee believes the current rally in the Indian market is not a pre-Budget rally but is far more global than local because most other markets are also doing the same. It's a global melt-up, which Indian is participating in no, says Mukherjee. The question is whether the Budget will lead to some out performance from our market or some relative under performance in near-term, he adds.

So globe remains the key not the Budget or earnings, says Mukherjee.

For the entire discussion, watch video
First Published on Jan 29, 2018 09:25 am
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