Second worst year since 1980 for Sensex
• 2nd worst performing country in Asia Pacific EM’s
• Pain is self-inflicted; Correction more due to India Specific Issues
• Concerns about the mid-term direction this country is taking
o Increasing subsidies, zero reform
• Trend growth rate coming down, could settle at 6.5-7%
o Inflation expected at 7% leading to nominal growth of 13-14%
• A new normal in rupee, to sustain above 50
• The 3 ‘I’s : interest rates, inflation and infra
o Of the three, two will turn positive in 2012. Infra will take time
• Globally, things not as bad as perceived in August
o In US, there is no double-dip
o In Europe, Endgame will require ECB coming into play; that has started
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