Despite efforts by Indian Finance Minister P. Chidambaram to reverse market disappointment over his budget proposal last week, the key Sensex index has dropped 1.4% while the rupee has fallen to its lowest level against the U.S. dollar so far this year. However, the downbeat mood may be short-lived, Deutsche Bank predicts, with the Sensex seen reaching 22,500 by year's end on anticipated monetary easing and improving global and local fundamentals.

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