Morgan Stanley-India Research

Morgan Stanley-India Research=Indeed, this is likely to be a strong rally and could be something similar to the one we got between mid-March and mid-May (21% rise in the BSE Sensex) if these conditions continue. We expect bulls to get complacent and start to believe that this is the beginning of a new bull market. However, we think this is likely to prove to be just another powerful bear market rally. Afterall the market still faces headwinds from high crude oil prices, political uncertainty, fragile global financial markets, weak domestic sentiment, likelihood of higher long bond yields, slowing growth and prospects of earnings downgrades