The $1.8 trillion economy probably expanded 5.5 percent in the three months through September from a year earlier, Finance Minister Palaniappan Chidambaram predicted on Nov. 24, matching the rate in the preceding quarter.

Economists forecast a 5.3 percent increase in gross domestic product, according to the median estimate in a Bloomberg survey before data tomorrow. That would match the pace in the first quarter that was the slowest since the three months through March 2009. Goldman said growth will pick up to 6.5 percent in 2013 and 7.2 percent in 2014 from 5.4 percent this
year.

Foreign funds boosted holdings of local stocks by $1.1 billion this month through Nov. 26, exchange data show. Three-month onshore rupee forwards were at 55.75 per dollar, compared with 56.34 on Nov. 27, according to data compiled by Bloomberg. Offshore non-deliverable contracts were at 55.78 versus 56.32 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.

Eoin Treacy's view The US Dollar has been rallying persistently against the Indian Rupee for seven weeks, but encountered resistance in the region of the overhead trading range today. A sustained move above INR56 would now be required to question potential for an additional bounce by the Rupee. Generally speaking, the strength or otherwise of Asian currencies is a reasonable barometer of foreign interest in their respective capital markets. Today's positive response by the Nifty Index to the currency's strength is an additional encouraging sign that demand is in the ascendency.

The Nifty Index retested its 2008 peak by late 2010 but subsequently moved into a lengthy process of consolidation as the pace of reform slowed, corruption and bureaucracy became increasingly important concerns and the RBI maintained its tightening bias. Just to demonstrate how disappointed the global investment community had become with regard to India I would like to relate an anecdote from my trip to California earlier this year. A relatively senior person at a Nasdaq-100 company told me about another such company that had been attempting to build a facility in India. While the infrastructure they required existed, demands for bribes, additional forms of graft, bureaucracy and corruption led them to abandon the project. He quoted them as saying that India was not a country but an acronym: “I'll Never Do It Again” This leads us to consider India from a governance perspective.

At Fullermoney we have long said that Governance is Everything. However, the trend of governance is more important than the absolute level. We obviously have higher expectations of governance from advanced economies than those which are only beginning to embark on a road to development. The most important judgement call is whether governance is getting better or worse. This is why the forcing through of long delayed reforms by the Indian government last month has been a catalyst for improving investor interest in India. India's standards of governance might be questionable but the trend has returned to an improving trajectory. As long as investors see it in this light the stock market is likely to enjoy a tailwind.

The Index found support near 4500 in December 2011 and has held a progression of higher reaction lows since. The two-year congestion area now has a rounding characteristic consistent with accumulation and a sustained move below the 200-day MA, currently near 5400, would be required to question medium-term scope for continued upside.

The banking sector has led throughout the last few years and completed it short-term range today with an emphatic upward break. A clear downward dynamic would be required to check current scope for additional upside.

Among the Indian ADRs and GDRs, US listed HDFC Bank completed a two-year range last week and while some consolidation of recent gains is a possibility, a sustained move below the 200-day MA, currently near $35, would be required to question medium-term upside potential. Dr.Reddy's Laboratories continues to hold an almost two-year progression of lower rally highs and is currently testing that downtrend. A sustained move below $31 would be required to confirm resistance in this area and question medium-term scope for further upside. ICICI Bank found support in December 2011 and has held a progression of higher reaction lows since. It found support in the region of the 200-day MA last week and a sustained move below $36 would be required to question medium-term upside potential.