Happy Thursdays! The strange india stalemate continues..

india apparently has no bad news left that could shock markets further and yet being one of FDI’s favourite Asian destinations it is unable to get new monies flowing into the deep $2 T markets in equities while Fixed income holds at 8.5%, inflation likely to trend at 7% or below with soft conmmodity prices and Greek exit from the Euro concerning it in the very least even as the Eur INR holds almost close to 1.28 levels when the currency plans to breach 1.27 globally giving it the annual yatra trade for a round trip arbitrage with globa markets.

Japanese and Singapore GDP growth enthused the Asia economies but not India, China’s slowdown has given impetus to the maxim that India will lead the recovery but no hard cash has followed yet. Most global banks and institutions are carefully looking at India’s bank regulations and though there is no GAAR there is no impetus for investors to grow their India investments like they seem to get in China’s totalitarian regime. 

Corporates like Bajaj Auto become very poor examples of India’s independent matured markets having gone by RBI diktat, hedged 85% of their large export earnings at below Rs 50 to the USD and looking at quick EEFC redemptions again to shore up India’s 5% Fiscal and a not far behind large current deficit where again lowering commodity basket prices still do not mean any benefits accruing and now the bar has been obscured by another 10% fall int he Rupee. there is no real bad news still left though and that means probably market wants to consolidate before moving up while traders are already impatient leaving the markets open to more whipsaws in trading, 

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