In state polls last night in India the opposition party won a stunning upset in areas that hold about 200 million people.
The Reserve Bank of India (RBI) is attempting to balance the risk to growth to possible increase inflation in which it decided to leave its lending interest rate (repo rate) unchanged at 7.25% as well as its reserve ratio unchanged at 4%. The RBI’s move is in line with analysts’ expectations.
Recall walking through the ubiquitous chain drug store near you to see the cologne shelves where the knock-off brands advertised “If you like Paco Rabanne, you’ll love ‘Paul Raven’ cologne.” Basically it smells the same but is a lot cheaper.
While the U.S. was gorging on turkey, China printed the highest HSBC Flash PMI in 13 months and looks to be ending a 7 quarter contraction in manufacturing that has been overly detailed by market players and media.
Even as many manufacturers bring operations back to the United States, IT outsourcing is still doing well as evidenced by Wipro (WIT, quote) earnings out last week. The company presented a positive report and outlook, a rarity for the company as of late, with a 24% increase in net income to $300 million on a 17% jump in revenues over the same period last year.
The ruling Congress party staged a huge rally over the weekend to defend recent reforms and build support for more foreign investment in retail and insurance. Just last week the Premier, Manmohan Singh, replaced members in his cabinet to reach the younger electorate and restore credibility to a government that has been racked by widespread corruption. Elections in India are held every five years and are scheduled next for 2014.
With all the doom and gloom in the euro zone, China and in general mixed economic data out both developed and emerging markets, we can find a bright spot in India’s equities and economy.