“Accumulate” India
[Elara Rating Guide: “Accumulate” indicates positive bias in
fundamentals with a five to 15% upside]
2012: Year of turning points
It was on January 10, 2008 that the Indian market hit its all-time high.
Today, 4 ½ years hence and potentially the longest bear market, we
see reason to turn mildly bullish on Indian equities. The cliché - ‘Wall of
Worries’ will get conquered this year and 2012 might well be the year
where the economic variables of the nation will see the maximum
turning points in Peak inflation, Interest rates, Fiscal deficit, Current
account deficit and the lows of GDP, IIP and INR, all of which will likely
turn favorable in 2013.