>INDIA STRATEGY: Governance and governments: Key theme for CY2012 in Indian Stock Market

Governance: The missing link. The performance of the Indian stock market in CY 2012 will laregely depend on the ability of Indian and eurozone governments to manage their challenges. We expect 15-20% upside to the Indian market if (1) governance improves in India and (2) Eurozone sovereign-debt issues get resolved favorably. In the absence of the former, India may have to contend with low GDP growth, high fiscal and BOP deficits and limited investment opportunities.

■ Governance and governments: Key theme for CY2012

■ Macro-economy to get only marginal relief from respite in inflation and oil prices

■ Portfolio strategy: Still hedgingour bets but taking a more positive view

■ Earnings outlook: Some resilience given composition of earnings

To read the full report: INDIA STRATEGY

RISH TRADER