Atim Kabra

Short India Is a Perfect Emerging Market Trade

Fundamentally flawed argument:

Information technology companies and basic commodity producers / integrated commodity based plays which make a significant percentage of the Indian market (be it the BSE 30 Index or Nifty Fifty: main indices for synthetic products) are not impacted if the rupee falls against the dollar. IT companies realise better profits while commodity producers price themselves in dollar parity terms.

A falling currency argument may have some merit (though argument may turn itself on its head when markets stabilize). However, the currency will fall, so short the market is not the best of the strategies.