The news of a genuine V-shaped recovery is beginning to emerge, not just in the US, but the rest of the world. The emerging markets continued to out-perform, with the NIFTY gaining 9%.  For the fiscal year 2009-10, the benchmark Nifty is up 68 percent.

Going forward, there are two debates. First, does the growth momentum continue, or will the conservative and bearish forecast of a double dip in GDP growth come true. This, of course, is the dreaded W. Some clues on the earnings side should emerge later this month. Second, when does the market correct from its rise? The constant market chatter is of a correction, and perhaps the pervasiveness of this expectation is delaying its occurrence. At Oxus, we expect the markets to remain volatile with an upward bias.