Speaking on earnings, Pradhan sees better earnings in H2 FY10.

The dollar has been trading weak for the last few weeks. Commenting on which countries and asset classes will benefit from the weakness in the greenback, he says commodities will gain as the dollar weakens further. "The dollar weakness will also be positive for India".

So when there is too much money chasing too few assets, there is some sort of overpriced momentum, which continues and this not something that can be explained by way of fundamentals. I think even globally, markets have moved up pretty significantly and very quickly. The fundamental view would be to be cautious, however, the fact remains that there is just too much money sloshing around in the system.

in fact, in earnings there is a very different story building up and one of the data points that the Q2 of last year was good for Indian companies, especially, if you look at metals, it was almost a blow out quarter, compared to that this year, maybe just there or a little lower than that. So there might be post the results as we see them in September, some sort of temperance to the mood.

But as we go along in the second half, especially in the last quarter of this financial year, the year on year (YoY) comparison is going to be tremendously attractive because the fourth quarter is when a lot of the companies came in and reported a lot of extra ordinaries, lot of reported earnings were very subdued in Q4. On top of it, the base effect on economic numbers and the base effect of the earnings numbers for the second half, you are going to see some significant fundamental numbers, which are very positive going in the second half.

My only issue is that one has to take these numbers with a bit of pinch of salt because it is just not reflecting the fundamental story as we work around. But the point is that reported numbers are reported numbers and that might be another reason for liquidity to continue to flow in.