Bad news economics may have won both 2011 and 2012 but 2012 has come out strongly with India emerging as 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 to the buy lists but not CIPLA and DRREDDY
The Rupee has really strengthened in the 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 deficit fronts equally fast but at $92 it is unlikely to last too long.
- Late Morning Trading Strategies India September 06, 2012 (awardz.wordpress.com)
- India Morning Report: A Resurgent India, A Resurgent Festive Season? (awardz.wordpress.com)
- India Morning Report: A resurgent India, a resurgent festive season? (awardz.wordpress.com)
- India Morning Report July 31, 2012: Oil buying done, new FM in, stocks bullish (awardz.wordpress.com)