India Morning Report: Sullen Markets Ready to give “grudging” Acceptance To Policy

English: The New York Stock Exchange
English: The New York Stock Exchange (Photo credit: Wikipedia)

The whole dog and pony show biting the much expected RBI policy non event and show casing a big war with the MOF in which RBI Governor was backed by all ( not just most) Economists and market commentators and markets moped as if they were being left behind on the family’s “rate cut” vacation is likely to come to a blinding finish when the markets opened post Hurricane Sandy in the US.

On that side of the Atlantic NYSE is to blame for not having taken adequate measures for such natural disasters and for having the antiquated systems that do not support remote electronic operation of the markets but it is in a way a true homage to the disaster Sandy has wrought.

However closer home, PSU banks are well and truly going under losing upto 10 basis points in NIM every quarter of provisioning and some that choose March 2013 as a one date to present updated balance sheets might go thru a sea of red too as none of these recast assets have been provisioned, worth INR 300B at Allahabad Bank alone on a Book worth INR 3 T and that means a loss of INR 8 B on provisioning expenses for that bank alone.

Other good 50% + results on sales and profits will continue to pour but you have to weed out the delisting candidates with very less floating stock from amongst them such as Colgate ( Thanks Nikunj Dalmia, ETnow for the hat tip)


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