Liquidity driven rally helping airline stocks: Ajay Parmar
There is immense amount of liquidity chasing these stocks and because of that we do not see the prices falling.
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| Updated: ET Now spoke to Ajay Parmar, Head - Institutional Research, Emkay Global Financial Services about airline stocks.
Why are airline stocks moving up when crude prices are at a 2.5 year high?
In this kind of a market, you have to respect the liquidity. If you go by the books or the theories, you know that ATF prices are going to go up when crude prices go up. However, there is immense amount of liquidity chasing these stocks and because of that we do not see the prices falling. In fact, the stocks will be moving up, so it is just the liquidity driven rally, which is helping them.
Why are airline stocks moving up when crude prices are at a 2.5 year high?
In this kind of a market, you have to respect the liquidity. If you go by the books or the theories, you know that ATF prices are going to go up when crude prices go up. However, there is immense amount of liquidity chasing these stocks and because of that we do not see the prices falling. In fact, the stocks will be moving up, so it is just the liquidity driven rally, which is helping them.
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