Amidst Uncertainities

Over the last couple of weeks, the markets have been at their volatile best, gaining significantly and then shaving off the gains. Though this has largely been the trend for the last over a year now, the immediate triggers could be the rising crude prices with Brent crude rates hovering above $75 a barrel and the ongoing earnings season. A bigger factor, the Lok Sabha polls is creating uncertainties over the government formation and what happens to the reforms and the development agenda. Needless to say, this volatility is here to stay, at least for the next few months till a new government settles, crude settles down and confidence returns to the markets. The volatility has had an immediate impact on the small and mid caps which have become riskier while large caps, with lower returns have held their position. Investors, particularly foreign institutional investors as well as domestic...