India closing report : Rupee Rally to continue, Stocks to jump to another gap opening

Actually the headline is the same as last week, just less emphatic this time and the index starts at a low 5230 closing of Friday. Results season was good to corporates but most were already expected to be such and the sell on results continued as markets invest in news of growth and neww levels hold for most scrips.

HDFC Bank for example with 33% growth in loans to individuals has a INR2.54T loan book of which just about 52% is retail. The Rupee moved on trade deficit data that shrank to $10.6 B in June and imports down to $35.9 B the $25 B export tab is a trifle lower on th eyear but the groth is intact as shown by an incipient production data increase. 

Markets are decisive and equally hearty is sticking up for new stock levels like 247-250 for ITC, 580 for HDFC(maybe 565) and 923 for ICICI Bank (maybe 899) while Infrastructure and construction stocks mull the next move. The correction in Sun Pharma is not done yet but most Healthcare stocks are good no tjust as defensive but as long term portfolio purchases

Infy has seen tentative buy at best. Theer a re a couple days yet before Wipro starts moving up on results , whil eBiocon is poised for a secular run of investment and AMRUTI and Bajaj are at buying levels. Avoid Telcos and their overvalued tone and tenor as they get ready for bigger debt burdens and slower growing markets




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