one week to go, rupee made an equally violent come back even as the Euro finally matched INR levels to its own performance in Europe rather than wait for its comeback with atronger levels against  the rupee on the back of depreciation against the Dollar. Dollar marched on relentless against currencies yesterday before Chines Flash PMI data again confirmed the worst and againa rally in base metals and precious metals has been nipped in the bud because China would not be importing any more in a hurry. for equities, it means the risk trade isd definitely off but the Dollar may have stoped rising giving a temporary synaptic failure between rupee depreciation and Equity crash so qequities recovery can likely continue after the rupp is back at 55 levels too, not necessairily nosediving at every pick up in the USD against our currency. Changes like china's tick down and the crash in New zealand exposrts for example could disconnect the all markets correlation  and that would be fortunate for most FIIS too as the Risk on trade can continue while Europe implodes on itself Spanish and Greek yields continuing rising upwards and ECB unable to afford another LTRO. 

But then a lot of you should npow just be trading June futures and banks and select equities like IDFC, REC in the infra sector ( or construction if you prefer) 

Posted via email from The India Investment Post