Indian yields settled down to 8.5% comfortably after a run on the Indian bonds brought them back above 8.5% when the Dollar ran up a big 1% wall and kept the Euro from crashing in Indian trades. The recovery in rate sensitives may now have a stronger reason to yield to Export heavy businesses like Bajaj Auto and Infosys but whatever be your sectoral poison, the Indian markets will accept all inflows and the inflows will keep getting stronnger from these levels in the equities market.

And though no one would bet on the Rupee's recovery, the RBI would come in only once and thus that currency equation remains weak for us udner pressure from hot money as always. Asia leads global recovery and in the Asian recovery, India leads from the front followed by China and its ASEAN friends with Chinese investment 

The Euro unfortunately complicates india's still effectively Dollar pegged currency as it wants to protect the interest of Exporters dependent on Price for European demand for indian goods for reasons best known to India's specific non Capex led dependence on Exports. 

The import basket continues to offer super deals to aid the india inflation story and that has definitely eased the pressure on policy planners. But trading whipsaws keep India inc busy rather than new business paradigms. Facebook's $104 bln IPO or Piramal's INR 35 bln purchase of Deceision Resources Grp become easier to appreciate for predominantly consumption Economies in the USA than for the Indian palate. 

Posted via email from The India Investment Post