India Morning Report (June 29, 2012): The bull run reopens quick and fast

Infra stocks may not make more than a good audience for this rally as yesterday’s razor edge close looked to mark out winners like IDFC out of the gainers’ lists and keep midcaps in the running as a motley cre of non banks and banks that have not caught the bug come in without a disparaging notee on those excellent banks of course. 

HSBC earned a good INR 500 Bln yesterday and as it was a planned sale, the bank may finally be ready for using the increased capital to good use int he India market as it tries to grow the personal lending business fueled by the price cut in Petrol counting to more than 50% of the announced hike. Oil companies realisations are a low $56 per barrel after subsidy computation and credit at ONGC

Perfetti Van melle has an indian VP of innovation and Business Development from the India ranks. PVM has been a regular at the Cannes Lions, getting another Bronze Lion this year. However, the Amsterdam based role comes after a long hiatus for Indian professionals and with Banking retail still degrowing at Citi and HSBC and Stanchart full up , there is no space for jaded ICICI Bank groomed pros to move in the ‘city’

The big rush in Nifty options: please avoid getting in above 5200, there may be many more corrections despite PM Manmohan singh taking the chair.

Speaking ofInternational spread of our Services sector, Only $2.6B of outard FDI came from india as a hole in 2012, the IMF contribution of $10B or 3% aside, and Rajat Gupta has been convicted n four separate counts of insider trading with Goldman Sachs AGM in Mumbai still fresh in everyone’s minds. 

GIC of Singapore had a windfall partnership for Brigade enterprises, and that shows that the Economic amount of participation in India is getting smaller even as a RBI report flagged the Top 100 cities as getting a larger share of the credit with 73% of the INR 3.6 Tln stock South continues to dominate in credit pick up and outside the metros as the Deposits from the south are far lower than the credit share of 20% and 33% respectively. The north maintains a fair Credit Deposit Ratio of 75% while Greater Mumbai seems to be the only distribution center in the West of India’s INR 3.6T credit in the report. Overall Credit stock is highest at INR 48 Tln but with Non performing growing to 2.6%, the profitability is a given for only quality large franchises

more than INR 200 BLN in restructuring applications was received by banks in Q1 after the numbers for restructured loans also grew 11 times in the last results at mearly INR 30 B. However, the Indian stress tests gave a clean chit to the banks who are well capitalised almost without any loading on short term liabilities or structured credit in their Capital and yet work ith a D rating in the international markets 


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