Dr Manmohan Singh, in addition to being Prime Minister now will also act as Finance Minister until about September. There is optimism that Dr Singh may take more practical steps to lead India out of a difficult economic situation. He is largely credited with ushering in the economic reforms of 1991 which set an upward economic path in India for the last 20 years. However, great challenges face him this time around. He will be 80 in September and has had a multiple coronary bypass operation in 2009. He heads a fragile Government with fractious Coalition partners that have stalled the economic reforms process. He takes charge of the economy when it has slid to its slowest pace in nine years, and the Rupee has touched an all time low against major currencies. The ballooned fiscal and current deficits and mis-steps on the tax front have hit foreign investor sentiment. The challenges for Dr Singh are great. But if he is able to take quick positive steps to boost investor (domestic and foreign) sentiment then optimism could fast replace the current pessimism and boost markets.

David Fuller's view India is another market for which perceptions have been very low and expectations correspondingly bearish.

However, the Nifty 50 Index has shown resilience near previous support levels dating back to 4Q 2009 and a break beneath 4770 would be required to negate the current prospect for sideways to higher ranging.