India Morning Report: Pledged 100% of your holdings and market is up

Seemingly though, there is no more free money in that. It could have been on a generic basis because of stricter internal risk guidelines, and fat tail events precipitating the HDIL event could also be innocent ones like pledged shares needing to transfer ownership and bank ownership of the same got in the way and so many other reasons. All of them a 100% unlikely. Almost. Because HDIL is paying for surrendering all its real liquidity to its pledgee bank that took all its sharees to extend it a loan and while margin calls are a norm to a down bear market, getting into the bull orbit, recovering real estate prices in Mumbai and some good real estate assets did not help HDIL

published from lodha's signature project site
published from lodha’s signature project site

The new mid cap stars in Mubai property are Phoenix, Peninsular land ( in this rally) and even Orbit corp where they really circled up the wagons. The signature Lodha property – The World Towers – aside there are others that have captured the public imagination in Mumbai including Exide owner’s (onlyy related families) “Raheja Platinum” in Worli touted as a first of its kind skyscraper commercial towers.

In the meantime Hathaway cable is still in play as digitisation plows ahead and makes a strong #2 in markets like Mumbai while Zee’s Dish Tv takes up the slack after a big run in digital stocks since November 2012 Back to banking though, the new NBFCs getting bank licenses could further reduce the universe of actionable Mid cap in India as most of them propeled into almost blue chip league by Net worth requirements alone would no longer be able to run up asset growth as a Mid Cap that they have wrangled out . Power NBFCs are a different story with REC and PFC having much more potential for even doubling assets twice over. yesterday’s almost breathable recovery at 2:30 pm after everyone did think 6000 was a bottom signed the recession blues away too and regardless of China’s strong PMI performance and springloaded reaction in equities India is likely to get more allocations in a continuous September in the Pre Budget rally and later post Budget as the government still has a quarter in which to post other fiscal discipline measures midstream however miniscule they may be and then get into a big Welfare play  as it would take if the Congress led UPA with or without the UPA components ask for a third continuous term. If they crimp on spending in this Elections it could be byebye india inc though some Corporate India would still like to believe in NaMo’s extremist India as the answer to big brother’s comeuppance on us.

Also it was good to see Airtel and others stonr overtures for th eprice increase but attrition is likely to come back in waves, because “Momma, I still pay my own bills” and Call volume has been dowwn almost steadily since 2006 giving strength to losing hopefuls like Kotak who failed in growth herms since then too and the amrket have been waiting on their Indian style dhandha fundas to take hold on the larger untapped Indian market

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