USA & India - Stock Market Co-relations

In the past 2 months the Dow Jones Industrial Index and India's NSE Index have seen positive patterns emerging in terms of technicals - both showing a rising top and a rising bottom formation. Going forward, both countries are grappling with oil price led inflation and their respective negative internal micros. The markets seems to have resigned itself to some issues that they have little control over and are possibly looking at better times ahead. However, excesses on the upper side have yet to be reciprocated on the down side as is the nature of the markets. This could well happen if commodity markets once again spike up or an unknown eventuality catches everybody unawares. With political elections around the corner every effort will be made to feed market-friendly news in the coming months which may keep the markets steadier despite intermittent blips. Possibly, the scenario will add to the time-wise correction with a positive bias which the markets indeed requires for longer term sustainability.