Synopsis of the week

Indian Equity Market continues to be the best performing market in 2012 with Nifty clocking its 5th consecutive weekly gain, led by YTD FII inflows in excess of USD3bn. While this rally is not India specific, India benefitted the most from rising flows into Emerging markets, coming out one of the worst months ever in December. The week also saw Supreme Court deliver a landmark judgment cancelling ~122 telecom licenses issued by government in 2008. This would likely reduce competitive intensity and the sector would finally be served up the much awaited consolidation. Banking Secretary clarified that the Banking sector exposure to the affected parties is INR 100 Bn.