I recently received an email from a student inquiring as to whether or not the Indian economy may fall into a recession. While the stock market has been in a bearish mode, let’s examine it and the economy for signs of a true recession.
The Nifty reached a high of 6338 in November 2010. For an official bear market to be declared, we need a price drop of at least 20% or 1267 points from that high. So when the Nifty broke 5071 in August 2011, we were in a bear market. Oddly enough we broke that level on my birthday!
Oddly enough, there doesn’t seem to be a clear definition of a bull market in most financial writings. But if we use the same rationale we used for the bears, it… Continue Reading
