To start with I for one am very happy to stay SHORT on SUNPHARMA even as I wait for the rest of the healthcare stocks to signal the bottom of the ne trading range and start ticking back. SUN should move to 598 as others come out with results and the Mid Cap Pharma story seems biugger and stronger. Cipla is another which will be available for buying below 309. Stride Arcolabs and ORCHIDCHEM should remain in your portfolio
China has reported a huge surplius again and there are a lot of China PSE and digital firms which will be cornering the IPO market in Asia ahead of India’s international IPOs from Reliance Comm and Reliance Power
The $3 B CoalIndia float is still a good buy, hile a new $1B float by ONGC Videsh funds more Africa and Latin America energy buys Tata Power derating should hurt but it may be near the bottom of its range as Poer sector has been subdued for nearly two years
The Banks are still outperformers led by ICICIBANK and HDFC Bank. YES BAnk is a buy, IDBI might float up first from 5200 and INGVYSYA and INDUSIND are likely to be strong as well
Sales growtrh decline may be limited to a fe plays but rules out non discretionary plays though it may sound counter intuitive as Indians likely find that non discretionary budget to be fixed and not rule out entertainment and housing spends in the higher inflation scenario. Sales groth thus could remain good enough for a double digit earnings pop in Corporate earnings.
JET AIRWAYS should again have a good up tick as it generates INR 3 B in profits from Sale and Lease back of 5 planes and a much larger fleet to generate more such profits later. The IATA challeneg should be a damp squib however and DIAL should get its due revenues which are still less than a $1.5 a plane after the “large” rise and as of now that means GMRINFRA also IDFC survey thre out interesting intuitive results from the published survey and India could have more disposable income than suspected if only the future was not so hazy.
IDFC and GMR Infra remain good buys and the upmove imminent enough to hold on to longs