Portfolio investments in India aside, most global geographies show a big dip in Investment precluding any discussion of a substantial recovery and making possible impending doom led by sharp 20% plus cuts in China and Europe in Capex investments in the Economy with even US having shown a decline in Investment of over 10%. Again, that is perhaps the reason the worst India can do is a 5% growth in GDP after negative investments hit indian Economy for the fifth or sixth consequctive quarter
But thats saying India did not win the anti Asia rounds with its continuing in the virtuous cycle despite the global spreads widening on such news that led to scenarios above. India’s export driven businesses probably lead today’s mini breakdown as Infy leaves the NASDAQ 100 and closer home the Nifty goes back to 5860 levels with the SGX trading again in currency with global investors. Apparently the Dollar is sitting near the bottom of its cycle as its woes are nothing compared to that of Europe, Aussie and even China which at their current bottoms have thius more scope for falling. ion currencies that does not mean Rupee losing its minute marke share but it is likely a factor as attention focuses inthe real 24 hour markets on how the Dollar is to lead and thus the Yen is now in a tearing hurry to never before highs, its strategy of buying into US Treasuries at this time starting 7-8 weeks ago holding it in good steed.
The response to the fiscal cliff discussions though has ben exceptionally mature and neat till now and the end may well be nnigh as Boehner loses his calm and gets stuck on his side of the fence again as is now usual.