India Morning Report August 23, 2012: A trial by fire and we are off to the Money’lympics

The Fiscal Deficit disregarded by everyone except the polity entrusted with taking care of it, the markts have moved into a stronger bull orbit eased into place by not existing but foreseen liquidity from the Eurozone as other markets ecept for India may not have the fundamental strength and “systemic” growth push carrying them when the Euro indeed does not act on its proposed bailouts for another three months. It is also unlikely, given the propensity of Fixed income investors to return to US treasuries that Indian markets will really get any upgrades because of the move but then 6000 on the Nifty is much like an old sweetheart you met again than a new date for the nationof few but blatantly positively biased investors. 

The last six months were equally harrowing for the markets and no economic data series helped the cause of the markets upmoves during that time, now beyond it just by another stable government and a ferw trusted aides in position

The Money Olympics of course, much like the real ones already have many others with a track record and yet, better infrastructure facilities and a researched background. We are left with a few Silvers speaking to our inherent underrating by the “forever in trouble” rating agencies and a less than half a dozen india bulls taken seriously internationally, Mongolia and Indonesia inching up to catch up to India’s weightage in the Asia and Growth indices. But all that is later.

We do not need these medals to vouchsafe for our 30% growth in profits that most top quality corporates have again re affirmed in June despite the general hit to profitablility and the weakness in the Rupee in the first half of the year. The Rupee too, could move back to 54 levels if the markets remain buoyant but I wouldn’t blame you if you did not sell your Dollars in anticipation. Gold is up again and this year looks bad for the Oil bill with the Euro keeping its survival news and billling down the Dollar, increasing the Cost of newly flagged Iranian and non Iranian oil from the Middle East much higher despite increased domestic production in most non OPEC continents.   

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