The inflation which seems to be down for the present has potential to go up substantially over a few quarters.
The pulses have become very costly, the govt had banned future trading in pulses some time ago and the guidance that become easily available by the trading in futures went missing and the matter seems to have gone out of hand. The farmers could not judge that it is pulses that would give better returns and did not bring more area under pulses. The world markets can not cater to Indian demand for pulses at cheap rates. So every one of us will have to put up with high prices for ‘tur’ that have gone up to Rs 88/kg against Rs 57/kg in April 09.
Overseas investors have become interested in India story and are committing funds on ever larger scale. In fact this was very much expected right when some quarters gave a bad rating to budget (may be on purpose) which was in fact one of the best budget in the long history of 40 years since when I have been observing and analysing budget. I told you on many occassions to grab this as an opportunity to invest fearlessly, right after the budget day. You may go through all that once more and have your level of confidence built up and don’t shy away on days of decline.
I have already told you that results are saying that Indian corporates are in best of their health at the moment with promise in future too.
Let’s salute Nifty which stands tall at 4523 in the midst of world’s top indices which are hardly able to match its performance.