India Morning Report August 29, 2012: The correction moves on from Banking to Autos

The shorts have moved to Automobiles, Maruti short in the Top 6 with Indusind joining UnionBank, Bank of India and CanaraBank in the fight for relevance in the day. Indusind apparently has been fighting expectations after  it ramped up its loan book and efforts in retail with a DB cards acquisition. 

However as banks continue to be questioned and SBI having withdrawn( conciliated with RBI) its sounds for a lower CRR after a snap aattack on the field by Deputy Governor KC Chakrabarty. I wonder if between Subir Gokarn and Chakrabarty we have the next Governor of the Central Bank. 

The US and European connections are about to be snipped off as the ‘global’ part of the rally is unlikely to continue into election months for the USA and Asia is fed by uneven cash flows after stronger injections having been given the lie after the last few months. There is nothing happening at Jackson Hole, WY either and most market sense would steep in the blankness of the summit and wait for more longer term appendages to policy from the event

Banking indices may still recover but likely only after noon tomorrow. 


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