India Morning Report (July 01, 2012) : Onward to 5400

AS you hear other analysts in the market, Angel’s Shardul makes the most potent salvo that now shorts in Banknifty are finally lifting. Optimism on India’s fundamentals may be at the base of this rally but are not so obvious to most following the economic hara kiri in data patently obvious to a flailing monsoon, slowing profits and now even slumping commoditiesas the Rupee comes back. But if you look at the economic cycles as a whole this rally is not surprising as most are looking at a historical turnaround moment in fundamanetals after the repeating rupee cycle much like the Olympics and the Euro Socccer that comes back every 4 years

Yields in fixed income will stay corrective after the new 5 year bond and banks will keep the lead in india’s Economic recovery as PM Manmohan Singh’s’ office will have a couple of positive announcements during the week

Power projects are likely to be lifted by the Policy hurricane or “electric storms” even as neighbours in Indonesia and malaysia also jump a mile higher after the big currency meltdown (at least in the wallets)

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