Only time will tell who is right, bullish markets or bearish commentators

Even if investors disagree, they must not dismiss the signals the markets are sending

The Indian equity markets seem to be on a roll. Powered by a stronger-than-expected economic recovery, massive corporate cost-cutting, record low interest rates and surging foreign flows, markets are now up double digits for the year, after being down almost 40 per cent at one point.

This is not a uniquely Indian phenomenon as risk assets globally have been on fire, ever since the positive trial data on the vaccines was published. November was the best month on record for European equities, and one of the handful of times that US equities delivered double-digit returns in a single month. We