India Unbound

“The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions. “–Seth Klarman

The markets always love strong medicines administered on the economy. The bitter they are, the better for the markets. Raising fares, dropping subsidies, removing doles, removing roadblocks and restoring confidence will certainly be loved by the markets. But, these tend to build great expectations. The markets tend to think that much more is coming in the budget and don’t realize that the budget is actually being rolled out in doses. This leads to unrealistic expectations forming in the investor’ minds. This explains why great expectations almost always are never met. The coming weeks will see the government administer change in doses. The markets will love it. India’s transformation is clearly Work in Progress

Investment strategy: Get ready to sow . Invest before it rains.

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