The four things!!

The four key factors that drive equity markets: valuation, liquidity, sentiment and fundamentals. Check out the full article here.

What I think about the four right now.

1. Valuation: Is slightly below average. Might be better to look at individual stocks than the overall market.
2. Liquidity: Looks like there would be a lot of liquidity both from the ECB and also from RBI's anticipated decisions to decrease rates, cash reserve ratios, etc.
3. Sentiment: Hard to tell. Looks like a wait and watch attitude. That could be the reason for all the seesaw movement of the indices.
4. Fundamentals: Not completely in place but positive. The policy decisions by the Indian govt. can definitely help. India seems to perform not because of the govt. but in spite of the govt. In that sense the long-term story is still in place.