The Dark clouds of the monsoon are not to be confused with the dark clouds over global economic performance and deficiency in rains still have to catch up.
India reforms story’s failures have been enough to cause each non reform announcement day to dip on the markets and so the reform of Diesel prices ill bring good tidings, the Rupee Dollar gains multiplying sensex index gains as speculators on the Currency sync up to probably even neer 54.5 levels for the Rupee is the momentum can be sustained. Equities will finally be out of their nervous nineties and move up but then Policy panacea was never the dream of the markets who realistically relied just on India growth so the bordering maniacal tendency to live on the edge for news from North Block has been a dampener for the market’s targets and as I have suggested earlier, if food inflation is your reason for stopping growth then there is absolutely no out for this situation of Indian Business
The Daily Advance Decline ratios will be bordering on nearly 4:1 today as Asia finally rises to the occassiona nd the Dollar starts the day down with the Straits of Hormuz story clouding economic action of any other kind for the Dollar. SAfe haven flows to the dollar amounted to a massive $100 B in June
Power reforms will be the toughest act to follow and the consumer growth story hard to comprehend but that is the immediate ‘in’ still carrying underpriced businesses by the score ( 20 opposed to a dozen of 12 in most other emerging markets) while Banks have been dealing a golden hand around and are likely to win big in the ensuing redenomination