Besides, recent quarterly figures of corporate earnings have been quite healthy and encouraging. Further, India has well developed liquid and efficient derivative markets like Interest Rate Swaps, Currency Futures, OTC Forward Contracts which afford businesses instruments to hedge their financial risks. Moreover, exchange traded Interest Rate Futures are due for launch shortly which will further increase the choices to market participants.
The situation is similar to that of the familiar prisoner's dilemma in game theory. Imagine Chicago in the roaring twenties. Two gangland bosses are accused of being in cahoots and having committed very serious crimes together. They are interrogated separately. Whoever admits guilt and turns state’s evidence will be immune from prosecution, whereas the other will feel the full force of the law.