Over the last one month -- between October 26 and November 25 -- India has been the fourth best performing market across the globe.
Turkey is the biggest one-month gainer with its stock market index rising by 16.07% on November 25 over the previous month. Russia is the second best at 13.48%, followed by Japan (11.32%) and India (10.78%).
As on Friday, the Dow Jones had gained 5.34% in the last one month and the Nasdaq gained 7.28% and was at a four-year high. While these gains are impressive, the advances in other markets are much better.
Going by the price earning ratio (P/E) as provided by Financial Times, Japan turns out to be the most expensive market in terms of valuation.
India is the sixth most expensive market after Japan, Austria, Canada, United States and the Philippines. Of the BRIC countries, India and Russia are the most expensive with P/Es of over 15, while China and Brazil are at 13.1 and 10.
Equities are back in demand worldwide. The key drivers in this time's rallly are the same factors that have been responsible for the decline in the past two years -- oil prices and US interest rates.
Oil prices are under control and though the winter has been cold so far, there are indications of milder weather in the next few weeks. This has resulted in lower oil prices globally.
Crude oil prices have corrected from $57.92 a month ago to $52.15 on November 28.
The US Federal Reserve has indicated that the interest rate hikes may stop in the near future. Though two rate hikes are expected in December and January, which will take the Fed rate to 4.5%, no further hikes are expected. This has brought about a new buoyancy in the global markets as FIIs have pumped in money across global markets.
As a result, markets from US to Russia have seen investors rushing to buy stocks.