The Indian consumption story is working in real economic data, Japanese carmakers are trading up as Asian markets remain buoyant and state allocation algorithms for “captive” coal mines have spoiled the cake for future biddders and the production of coal itself even as Telenor extracts itself from the Unitech JV but the method leaves consumers wondering how they will cope after the auction of assets to non operating investment partner Unitech who is enjoying its days inthe limelight
FDI bets are in but Media and Digitsation stocks may have capped moves and trades in SHOPPERS STOP and DISHTV remain risky yet hard returns are likely. Trent and Tata motors may still capitalise on june performance and July Auto sales for a one week trade while HAthaway and DEN offer larger gain opportunities if you can track the situation on the ground.
Banks and Infracos remain positive and IDFC and HDFCBANK look good. ICICIBANK will coross 1000 but in asingle move that would mark probably 5300 levels and more for the broader market. Similarily YESBANK keeps edging up in anticipation and there are no shorts this side of the Himalayas.
Healthcare is also positive esp LUPIN and STAR. CIPLA will likely exit the bull trade before reaching 395-400 levels and midcaps will come back incl device maker OPTOCIRCUIT and FCCB/ECCB star ORCHID that has more export revenues than any forex liabilities and still jumped into the dollar abyss.
Fixed Income deriavatives traders with an asia outlook would really jump in Asia trading (incl India yields) this quarter, but in India NBFCs and Banks would jump on Trading plus lending gains. Indian yields have crossed to 8.25% on markets trying to move RBI to cutting rates. Oil is already trading at $105 and indian basket worrying about negating the gains on BOP