The BRIC (Brazil, Russia, India, China) markets completely fell apart during the downturn in commodities and global manufacturing over the last two years. But 2016 has been a different story. The first few weeks of the year saw continued pain, but once lows were put in, equities in all four BRIC countries staged massive rallies.
India’s stock market surged 40% in 2014, but it gave much of that back in 2015. After making a bear market low in February, we’ve seen a nice recovery and short-term downtrend break over the last few weeks. Today’s action has pushed the Sensex to new rally highs.
Looking at the five-year chart, the Sensex still hasn’t managed to break above its longer-term downtrend channel. We’ll need to see another 4-5% of gains for that to happen.
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