India Morning Report: A new Infrastructure corridor cannot ‘save history’
At 40, I should probably be more considerate about feeling young, given how I felt about India’s youngest dynamic Prime Minister about 20 years ago, but Cameron’s trip to India definitely highlights that young Britain though trying to make new bridges with India thru London is a different equation and with tough domestic economic conditions, the easier migration philosophies of the UK and the US for multiplying factor productivity are in danger of being decommissioned as defence deals unravel and India searches for relevance from a different end of the equation as the budding largest Economy , recruiting dollar salary staff in cost saving IT portfolios and UK looks at being the struggler keeping the light on regulation economics of a past era alive in the new European ‘coalition’ while trying to cut more costs than the rest in a virtual throw out of expansionary economics ( deficit growth)
Jeez, that was a snapper overcooked in Indian spice, definitely.
The morning however, is as dull as last week, despite a new Infrastructure corridor, which seems to matter more to small investors with linkages to the ‘barely productive’ IT and annuity economy of Bangalore with the old warhorse of Bombay not the same as the Jap funded Delhi Mumbai corridor. The Bangalore and the Economy of the South in general is more about spread out factors of productivity that are more socialist and crowdfunded social media fed than the big money Economy that links Mumbai with Delhi or the more labour Economy linkages of Bombay with the East
On Morning Report questions however, Mumbai Real Estate hopes continue to drive DLF and the rest of India’s Construction Economy, and in this leg of the Nifty/Banknifty rally the entire bank, consumption and pharma portfolio too that is priced into newer levels and is looking for a little lightweight and adroiting sifting thru real value and jump to all time high levels on the indices. The Budget expectation part is mostly done except for the small trading rally in the week prior as or post as we nail down the new fiscal deficit range and if all the improvement we have espoused and made appear indeed converts into a hard positive number(5.3%). While JP Morgan has been adroitly positive on the rally too, Adrian Mowat for one, does not believe in the Economic Miracle of India despite the Japanese engine having taken over Asia’s future and China having taken a brief break into the new Chinese year after a good 2 month rally and again despite profit-taking, made all funds flow to Asia wait and watch till liquidity returns in inflows to Japan and India in a couple of months.