affinor

India's Sensex Likely To Trade in 11-13K Range Through 2008

Just wanted to comeback and compliment the author. His analysis was very simple, yet much more accurate than anything I heard.

India's Sensex Likely To Trade in 11-13K Range Through 2008

I think it only goes on to show that july sell off was the bottom for the US markets. Emerging economies have only been amplifying the US sentiment. Sensex over 15000 during intraday trade today.

Outlook for the Indian Economy

Very well written article. But I do feel one aspect of rising inflation has been missed by the author.

Considering that vehicle ownership in india is not very large, a lot of inflationary pressure comes from agricultural commodities. With the rising food prices, there has been a significant increase in investment in agriculture as evident from the agri export numbers. It is however hard to accurately incorporate contribution from this into the GDP as a lot of commodities (esp vegetables) are a part of a very disorganized and local market. This contribution however is vital in the long run in distributing income far from the financial centers in the metros. As long as the government is not too punishing on the export-import policies, a growth of even 7% with the added agri contributions should be better for India