Axis Bank is likely to do exceptionally well in a strong AMJ quarter in which yields moved down and lending business grew handsomely for the right lenders. Axis has also increased operational efficiecies in 2010 and 2011 which have since tapered off. Net Interest Income will see strong yearly growth but may struggle to rise sequentially from the high water table for Q1
The Rupee does not encourage much trade at lower levels seeing spikes on every transaction in the NSE and may have bottomed out at 54.9 for most players being on the long side. However, the global moves and the Asian correction in korean WON and SGD may be followed by the rupee which does represent a large transaaction island of 5% growth and Exports and imports make 1/3rd the GDP now.
Unfortunately the shorts on IT have taken the wind out of the up-move which is strange considering the bulls are still on in Banks, Healthcare and even consumer goods performance though that has a bleak outlook after results season A single MARUTI short from here can test the Sensex 5200 and even 5100 levels after Axis Bank results are sold in instead of jumping further etc.
- Late Late Morning Trading Strategies – India July 11, 2012 (Results season preview) (awardz.wordpress.com)
- 11 AM UPDATE ( As opposed to Late Morning trading Strategies) (awardz.wordpress.com)
- Morning Trading Strategies – India July 17, 2012 (awardz.wordpress.com)
- India Morning Report: Surf’s up, No rain no gain and other stories.. (awardz.wordpress.com)