India Morning Report: A flurry of good results in Week 2 but markets wait more Budget news for FY 2014

Even as Novak Djokovic made it thru another Marathon qualifying round with Warinka this year in the Aussie Open, markets wait nary a move on results from the likes of Hindustan Unilever and Kotak Mahindra Bank even as leading lights from both the non-discretionary staples sector and banking have already been awarded in market terms to Yes Bank ( and HDFC Bank & Indusind Bank) as well as ITC.


While Bharti and ICICI Bank follow in the wake of these results that come in today, after the Auto (2-wheelers) war of market which Bajaj Auto scored over Hero motocorp, it is but a residual interest from major institutions that brokerages wait on stocks matured and still having signifact float as well as share of their respective product markets. In more simple terms, no one is really interested in HUL anymore or even Kotak except for their most hardened followers.


Kotak Securities logo
Kotak Securities logo (Photo credit: Wikipedia)


Even ICICI Bank may be called matured in similar terms but  closer look reveals that stock to be more response and volatility hungry than these annabes that have managed to be the lead stories of India Inc for a long time. Yet, they still produce growth and in case they are truly able to break thru



the barriers that stop all indian consumer and growth stories to $1 bln a brand, they both might yet throw a good surprise.


Change in regulations on road highways allowing projects to proceed are a good sign for those waiting for the infrastructure juggernaut. Also great were stories of Spicejet’s success in growing realisations more than 30% to INR 4400 per passenger and operating profits up nearly 40% this quarter even as investors wait for Emirates and Etihad to finalise their India deal, the Dreamliner stand down having also meant better revenues for global airlines and to a limited extent those stranded by Air India in India. Jet Airways continues to show good competitive spirit with Spicejet and with the market yet not tapped much more than the surface , even Koingfisher’s dud mismanagemnt continues to be ignored in hope of FDI.


China’s dynamics are changing slowly but its revival is no t history. The current lull in commodity prices was however expected as it has happened in other cycles that China really does not need to start buying metals cottons and even its other Export industry raw materials like for Silicon Cells (Photo voltaic) at higher prices and so the commodities are going thru a natural correction.


The Fixed income markets have apparently overshot the 7.9% mark, making the 7.9% mark a support on the way back but a rate cut of 50 bps or 25 bps apart the market might yet come back to above 8% as RBI does not have many choices when Policy is announced on Jan 29.


Duties on Platinum and Gold apart ( from 4% to 6%) the precious metals remain dull and Silver a good trade from 58000 to 64000 and from 63000 to 58000 whene evr you get the time and the patience


Novak Djokovic during the 2008 Tennis Masters ...
Novak Djokovic during the 2008 Tennis Masters Cup final against Nikolay Davydenko (Photo credit: Wikipedia)




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