Policy statements engender a peculiar and steep reaction yet in the indian Financial markets but for a change the Dollar market is not buying the dollar mercilessly on rumors from the coming rate decision and bad review reported yesterday while equities are holding on to most of yesterday’s gains at 5200 given that they were likely to run out of momentum in another 50 points and somehow that is sufficing for response. The rupee should touch 55.2 or 54.9 levels before going back and testing upper limits and esp if some political and FDI decisions are pout into the news nmills ahead of next week’s event close out dates.
Banks remain buys, mid cap It incl Hexaware and MindTree are out of hack with market expectations as are ex bonus winners like Jyothy labs. Maruti and Biocon should have been in the bull queue but the dead volatility around 16 has probably worried markets enough. Bharti’s capital raising is not a good sign for its stock though I do not know idf its ‘market makers are planning a bump like other mega IPO candidates before the dullness sinks in. It would be unlikely. IDFC and JPASSOCIATES remain good trading picks at current prices event after the jump yesterday
GAIL, BOB and SpiceJet remain good picks. I have no opinion on Muthoot, Manappuram and M&M Finance but they have made the shortlist. Bajaj Finance too may look at being rerated upwards at more houses next year but I am still contemplating it. CIPLA reports results and thats a ho – hum, SUN Pharma was looking like a quality stock and people need frequent switching in this sector’s picks incl yesterday’s news on thtat drug introduction in Europe which wahacks the rreturns into a future cloud in one hit.
Despite its active M&A which is the reason it remains large cap even with low yielding account wins vis a vis TCS, HCL Tech is close to topping off I’d say the early start for shorts this time.
SBI is good for a run up, YES BANK is still up, and HDFCBANK has been quite the hole week so it will take the starting blocks in this relay sprint.