InvestorQ : Have the Q4 results been better than expected and did that drive the Sensex higher in the week?
Dilmini Mercia made post

Have the Q4 results been better than expected and did that drive the Sensex higher in the week?

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Dawn Cherian answered.
3 weeks ago
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Actually, Q4 results have evolved to be better than expected and the profit growth overall has also improved gradually this year. To an extent, the good performance was driven by metals and oil and to a lesser extent by auto stocks. Now, sequential profits are up by nearly 10%. In addition, the net profit / GDP ratio has come in at a 4-year low of 2.6%. Profit growth has come despite a steep spike commodity prices of most inputs. FIIs like that.

Don’t forget, investors do not have much of a choice in the Indian markets to earn serious returns other than equities. This is what explains the proliferation of demat accounts in India. Investors are clear that bond yields will remain tepid, gold will at best be a hedge and real estate was becoming more and more unpredictable. At the end of the day, when VIX stays below 20, despite the market tumult, it is a message that downsides are limited.

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