India Equity Strategy The New of the Year
Key Takeaway
2012 will not be like 2011. On current economic trends, fundamentals can be seen deteriorating considerably, but this ignores the effects of massivepolicy intervention. The slowdown is now recognized as a problem and is being
addressed. There is no assurance that the policy shift will work. Compelled as
one may feel to make a comprehensive market call at the beginning of the year,
this is the time to wait and watch. Risks are high near-term and as a result
we do not turn positive right away. However, we are turning hopeful given
the plethora of new trends. If some of the new trends persist, we should have
enough reasons to turn our stance by the end of this quarter.
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