India Morning Report: With better deal flow, but mostly like it was August 2012


English: Aerial view of the London Heathrow Ai...
English: Aerial view of the London Heathrow Airport Terminal 4 (Photo credit: Wikipedia)


Markets still holding between Monday’s low and today’s 5750 levels, the db Access India conference getting to television in a simulcast (almost, with key interviews) and IPL a month away after the Mobile World Con in Barcelona and the New York Auto show next week..seems to say that we are back in August 2012 , evaluating India’s promise, viewing Modi’s ascension as a threat and looking for Consumption and Banking to lead India’s value definition for the next decade and not dwell too much in the unstable just past 2008-2012 before the next General elections.


However the key difference this month will be the improved deal flow with Jet Airways’ wrangling a $70 mln investment thru Sale and Leaseback of LHR (London – Heathrow) parking spots to Etihad to start things of f on  a $700 mln deal, better two wheeler sales yet again in February, a close to 100k sales by Maruti and doubling of Export numbers by almost every second car manufacturer including Ford and Nissan, Hyundai and Maruti itself.


Loss of Control in aviation spinoffs with FDI entry will be a hot topic even as the TRC issue is a no-show, all FDI deals will remain individually negotiated ones and the retail revolution will make slow but sure inroads in 2013 at the cost of unprofessional local promoters and India’s wilful MidCaps will continue to be shwont the door in this round of portfolio churn as well as Japan and China demonstrate that scale rather than key standoffs are key to expanding the investment ‘pie’ in the domestic economy. Meanwhile one is happy that Bayer lost the compulsory licensing standoff with Nexavar but does not see that good news translating into a cascade of good news as it should have with larger domestics with tie ups still struggling with market share ‘not to be’ in one of the world’s largest consumer markets and healthcare footprints in Asia and Africa.


However deals are faster and bigger with Strides and GMR both moving on to better corporate structure for their future and infracos also get ready for  a spate of fresh investment from international and domestic institutional participants and this renewal of investments holds key to India’s return to near double-digit growth levels




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