The biggest dilemma for medium to long term investors is when to make an entry or exit in equity markets. Just like other asset classes, one should look at a few leading indicators before making any investment decisions. Analysts believe domestic sales of heavy commercial vehicles and prices of copper are two leading indicators which have a strong correlation with economic growth outlook. A strong performance from copper is typically seen during periods of economic expansion and vice-versa. As seen from the chart, Copper prices have been correlated with the Nifty since 2000. Recently, copper prices hit six-month low on weak demand.
See the chart below. Comex Copper Vs Nifty since 2000