India Morning Report: A Resurgent India, A Resurgent Festive Season?

English: Prime Minister Manmohan Singh in the ...
English: Prime Minister Manmohan Singh in the Opening Plenary – Resillient india: 25 years of Economic and Social Progress. Participants captured during the World Economic Forum’s India Economic Summit 2009 held in New Delhi, 8-10 November 2009. (Photo credit: Wikipedia)

Bad news economics may have won both 2011 and 2012 but 2012 has come out strongly with India emergingas one of possibly three-four investments with a continuing positive return even after a 20% return YTD. Of course netwoks are trying hard to stay relevant during the bull run with all the blue chip[s having run off the top in the last week if not before and the rest of the rally looking like receding as the reform news flow is kept up by a government ready for the Election battles looming up ahead.

Straddling SP and BSP unfortunately does not give a clear window to bears and again their ould be heightened risks of a last moment cut off ( a sharp sell off) in the market when eventually Manmohan Singh “runs out of options” As of now 10 states have shown that other parties really have no hope and that these changes to India’s fabric are irreversible

A slew of festival holidays should keep investors relaxed thru october and november before Global markets slip into holiday mode while mid cap IT and HCLTech will be  hoping for more weakness in the Rupee. I am expecting Healthcare to make a return tothe buy lists but not CIPLA and DRREDDY

The Rupee has really strengthened int he opening , however likely just a calm before the storm as the weakness in Global crude benefits FX reserve poor nations like India on inflation and Tdeficit fronts equally fast but at $92 it is unlikely to last too long. 

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