India Morning Report August 02, 2012: The markets remain bullish, positive noises for the Rupee

China also entered a Balance of Payments deficit in the month of June which unlike a Trade deficit has hardly any prospects of positive Economic moves from it. India’s Balance of payments has been improvingon better Service Tax and other indirect Tax collections while China’s shadow banking system and truant corruption forces excess outflow of Yuan from the country negating a $17 B trade surplus to a negative BoP datum.

India probably still has an active incidence of some negative impact from the same problem in other years but for 2012 we could have claimed that to be on our side and claimed a bigger benefit from the improvement in BOP and increased the magnitude of inflows flowing into the market as FIIs turn their confidence in equities into hard cash even ahead of Draghi’s announcement backing the Euro at today’s rate meeting. 

Asian markets are up ahead of the ECB gala as the Dollar rides the boom down to the ground again. 

Meanwhile KKR’s global results have enabled ex Citbanker Sanjay nayar’s recruitment strategies, getting another colleague to join him and Sanjay Gujral and L CApital  cement their better sense of fashion and earlier purchases in Fabindia and others with another investment in retail entertainment , probably required for mall therapy. They invested mire than PVR’s annual revenues in PVR subsidiary they will run in a JV. CSome good decisions coming from L Capital this month even as KKR and Temasek/now GIC seem to have subsided on investments to be made. Temasek has a 80-20 split of portfolio in Asia vs OECD and GIC’s equity portfolio till now had less than 10% share of Asia and an even smaller proportion of indian investment

Derivatives Trading canvas seems to be getting bigger for the Indian market and for Asia as Echange traded derivatives bite margins at american Banka and international derivatives look for consistently higher margin businesses and increase liquidity in Asian markets

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