Markets continues to make new highs

The market rally that started after the initial all fall due to Britxit continues . As market continues to climb higher on wonders if the fundamentals will be able to catch up !  Markets tends to move ahead of fundamentals be it bad or good news . That's why we sometimes feel the market may be running too fast .

In India NIFTY has moved from strength to strength . What are the major positives and negatives from the market :

1. GST , GST and GST : Is all the good news on GST already in the price ? Has the markets considered that the good news on GST will take some time to be reflected in the corporate earnings ?
2. Interest rate cut : Markets in India is betting on an interest rate cut sooner than later.
3. Monsoons : The monsoons will boost rural economy and rural demand .
4. Global market rally : Last but not the least important is the fact that this rally is liquidity driven . The RISK ON mode continues .

So what all factors can spook the rally :

1. Fall in Oil price
2. US interest rates increase : RISK OFF from RISK ON
3. GST if it does not get the passes
4. CHINA : We never know how the events in South China Sea will shape up . Any escalation will increase risk premiums.

Market is like the little boy who  likes to run either way . Fundamentals are like the parents who move more slowly . Once a while the little boy looks back and if he can't see his parents then he runs back towards them .

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