India Morning Report: US Bank earnings buoy Global plays

HCL tech timed its growth digits well into the twilight of the US evening after the announcement of Goldman Sachs and JP Morgan earnings, posting sequential double digit growth in Financials at 11.03% and Infra Management Services leading the growth. The growth in TCV seems smallish on the released wire reports at $1 bln and I do not think augur well for this soon to be out of favor forever mid cap company that subs Vineet Nayar (with a bump up) witht he helpdesk chairman of the company, Anant Gupta in the true religion of non managers and non leaders flowing thru a below average morally bankrupt fabric of India’s IT annuity that forms the bulwark of business along with legacy TCS, Patni and even iGates or Hexaware which got rerated soon as Infy was back in play as the local constablularium for annuity business. Indian MNCs and consultants hunched over this industry as bread and butter thus remain equally copiously devoid of work ethic recruitment values or any other corporate governance virtue which mught just raise the cost of doing busines s in India before China even gets a chance to start chaarging for Trillions of dollars of the World economy in its new attempts at revival. in the meantime TCS gets to be the star on the Indian exchanges again and Cognisant continues to challenge from afar as the no. 2. 

However, bigger business is indeed afoot in India inc, Baja Auto’s great showing staying stable on last year’s data and Yes Bank’s trying to grow out of its first cocoon pretty much successfully organically as far as a quarter can tell. Better results are likely over the weekend or later from ICICI Bank and before that HDFC Bank. However lets let this daily report take the overview in cogent terms and not deal with too long an exposition on such subjects like performance. Seeing as the health of India inc overall is set to improve ast its own god given grace, it is unlikely that any expectations would have risen from yesterday’s results action esp with IDFC scrip now at least attempting to mirror its non infra businesses while infra Financing and its 108 project proposals lay idle on a work desk unable to fathom the tangled web mistakenly woven in without realising the impacts of long term 15 year financing on raising capital and managing cash flows.

Seeing that the bull market is especially partial to performance, I would rather we take adequate action now with the Economists fully staffed and the Planning Commission in full executive action than wait for the naysayers again at the bottom of the business cycle.  

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