New Delhi, Nov. 15 -- If the stock markets have been disappointing you over the past two years, the past few days may have come as a pleasant surprise. The Nifty and the Sensex have gained 9.1% and 9.58% in November thus far (as of 13 November), giving investors a reason to smile again and also driving home a basic stock market lesson.

Markets go through both good and difficult phases, and the best way to tide over market vagaries is through asset allocation. In the case of the recent rebound, the rally was triggered by a combination of factors, but there are also some risks still lurking that investors should be watchful of.

"A combination of factors seems to be favouring India right now. India-specific, the economy is healthy and corp...