Well, the conclusion of the charts below is crystal clear. The Fed tapering talk in May, which
led to sharp depreciation in rupee value, has clearly benefited the
firms with significant dollar earnings while domestic environment
continues to remain a hurdle. So, the investors should not be overly complacent if Sept quarter results were not as bad as everyone was expecting them out to be. We need to cover a lot of ground on domestic front to substantiate the India fundamental story.
The first chart is from my
first weekly commentary in November. It speaks of the divergence in the market performance of different sectors. IT and Pharma with their export earnings have dominated the returns this year.
While the other one from the house of Motilal Oswal speaks of the divergence in the companies with dollar earnings and domestic earnings.
Crude price gained mildly in Asia on Monday with the market looking ahead to an update on February crude output as early as this week and new demand figures later in the month from the International Energy Agency.
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