India Morning Report August 14, 2012: Now that everyone is long..

Please wait for fresh capital to drive the bull turn on this market as 5300 will hold on the bottom side. The inflation and Q2 GDP data are unlikely to be the bull indicators for the market but the amrket has been innured by the series than immunised as it wrongly sided on rate cuts which could well lead to a diagnosis of a banana republic for India down the line.

CPI series will follow later at 10% and above with food inflation in ‘proteins” unlikely to come in check without realtime policy action. Even otherwise market is ready to move up at the slightest hint of real implementation now that Chidu has been given a week to spread the good word and it is clear that words alone will not last this market in good stead nor India.

FII interest has finally focussed on India ahead of the liquidity rush, when likely other Asian markets will get a flourish without any of the  current investments being yanked.

The amazing moves in United Spirits on strength of its survival despite the KFA fiasco and investor interest / stakeholder interest int he same should fly to others in UB Holdings ( promoter company of USL) , and United Breweries its downstream holding but I for one am not sure why it should extend to the danger zone indicaator Kingfisher Airlines which cooked up a INR 10B pre tax  loss this quarter and this is not the biggest one it is likely to produce even with just 100 aircraft. 

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