Good morning, markets are unlikely to oblige ith another 50 point movement in the Indian indices and have decided to stay put in the 5300-5350 range without a boat to paddle out for you. Independence Day celebrations are on and the mid week holiday gives not just Capital Markets but offices in general a desolate feeling with no new business being added and India;s muted celebrations of the 65th anniversary hitting home in shame pieces throughout the week. Of course the anna Movement is not even getting that much from friends in the Fourth estate, the team expecting some kind of a Samurai Warriors group from the electroate to vote them into power on an anti-graft agenda.
Healthcare and Banks remain leading picks, speculative counters losing interest include Bharti Airtel, which may be good for the stock and do not include M&M and BAJAJ AUTO which are “should be frontrunners” but only “fairweather friends” and unlikely to become a good defensive with their being earmarked as Tier 2 in more places. Bharti in the meantime should be so lucky if it stays above water this week at around 240-245 levels as the company has shown a stable earning capability which includes losses from operational businesses on a regular basis not unlike our airline business peers. Jet Airways will surge likely as they are on board with enough calendarised Sale and Lease Back and selling tickets at high prices thru these big ticket weekends and holiday travel. Spicejet too seems to have followed peer Indigo chairman Rahul Bhatia into the Sale and Lease back method of balancing financials and have a good enough balance sheet. ATF is again now on a declining trend as the $112 peak for brent is a good point for Oil to go south and the dullness could like Gold take Dollar also slightly north but the currency is likely to face even more pressure on it from Exporters and PC friends. Policywise, Chidu is trying something mew called Old wine in a new bottle, but his packaging is already working and a Disinvestment Calendar with the usual nays from the PSE CEOS folloing next week onwards. Calendarised are RINL, SAIL and NALCO and BALCO which would all seem brave projects and potential VAL purchases!