 "Public sector banks, bank credit")
The last month has seen speculative market positions taken in sectors like Private Banks, Automobiles, Multiplexes and Real Estate. All of these can be described as trades based on hopes that Q2, and Q3 will see a pick-up in consumption, and better economic activity.
While base effects will moderate in Q3, we do have some positive signals signalling macro-economic growth could accelerate. The PMI for the Service sector jumped in August after dipping into contraction territory in July. Manufacturing was also in expansion territory in August. Inflation also eased off slightly, though there is a high base-effect to consider. The
