View from the Observation Deck

1. At the close of 2010, India's stock market had posted the top cumulative total return (Bombay 500 up 217.1%) of all the major markets since the end of the previous bear market on 3/9/09.
2. Like Brazil and China, India experienced a significant jump in inflation beginning in 2010. Its CPI rate stood slightly above 7.5% in February 2012, but did hit the 10% level in September 2011.
3. India's target rate for inflation is closer to 5.0%.
4. The Reserve Bank of India (RBI) raised its benchmark lending rate 13 times between March 2010 and October 2011. It hiked rates a total of 375 basis points to 8.50%.
5. The Bombay 500 Index declined by 38% (USD) in 2011, but has appreciated 23% (USD) in 2012 (as of 4/4). Stock market gains of 20% or more are regarded as bull markets.
6. Since 1986, the average bull market in India has returned 111% and lasted 394 days, according to Bespoke Investment Group.