India is Asia's 'Big Market to Focus on'
David Fuller's view He makes a good point.
The Reserve Bank of India has been very concerned about inflation. Part of that is due to India's food distribution and storage problems but energy prices are likely to have been an even bigger factor. The recent and welcome slump in crude oil prices (Brent & WTI) will give the RBI scope to cut interest rates significantly over 2H 2012. Also, the rupee is now very competitive, as Adrian Mowat points out.
India's volatile Sensex Index has rallied from previous support just below 16,000, with the Bombay Banks Index giving a positive overall lead. Wall Street's drop today will not help but if India's indices can hold above the lows established by this month's impressive upside weekly key reversals, this would increase scope for a further recovery in coming months.