India Morning Report : Consumer story sell down triggered in lackluster October

The unwillingness of the markets to go above fair value in festive season does keep hopes of futher buying improved while consumer plays from TTK Prestige to Sintex and Bharti to even Jubilant and Titan close ont hemselves to reset to their prices arnd 5300 levels except in the case of Dominos which remains a speculatively priced playand yet does not lose more than 4-5% on a week’s downtick. remaining above 1250. 

Tata Global seems to be well priced for a SELL with a solitary Starbucks store coming up in this calendar year at best 10 and the p\otential amply rewarded already. Healthcare scrips and Auto scrips remain int he red zone for the month led by Hero Motocorp and Dr Reddys’ .More price correction will filter through Hero and Dr Reddys as they are derated by vaunted FII portfolios and it seems ICICI Bank, Bajaj Auto and even down beat infosys have more capacity and demand from FIIs for holding the stock. ICICI Bank FII holdings are yet just 36% and Infy 39.7% as per the latest data released. HDFC Bank does have a much higher holding of FIIs and may not be able to sustain if some portfolios sell it down. However as of no the four mentioned have managed very well in the dull 5% economy and are thus going to be outperformers despite Industry worries. The Rupee has also run out its build up of two weeks ago and remains weak though the Dollar is not on a very strong wicket close to the elections with S&P near 1430 levels and not really crashing out of play

The reratin gof Infy has in fact taken down beat INFY’s institutional holdings domestically to near 20% from just 10% a year ago but the stock is not going to rise too much from 2400 levels currently as and when it steps outside the range of 2200-2600

Festive season spends will beat expectations albeit downward as December quarter results seem headed to herald the ever elusive bottom most had called early in September

Comments are closed.

Up ↑

%d bloggers like this: