After a brief pause in the first half of the year Indian demand and activity indicators are booming again, with credit and spending both surging. This has not yet shown up in corporate earnings, but if the local economy keeps growing like it is today it should only be a matter of time.

The problem, as before, is the rupee. Gold prices may have retrenched, but the combination of higher oil prices, stronger broad import demand and resurgent inflation doesn't bode well for the external balance and is likely to keep INR on the back foot.