India Morning Report: Buoyant results lead the revival of interest

As expected, India inc results for the term are much better than expectations including a staid 26% EBITDA result from TCS and great performnce from new age baning pioneers YES Bank that have preceded a global winding down in equities making sure India inflows are likely consistently increasing the course of the rest of 2013. Trade deficit data was a big plus at $190 bln adding just pennies to the 11 mo score of $182 Bln for Apr-Feb FY2013 and ensuring MOFCOM had its head held high and the Rupee trade picked up a beat, after the pressure before results screening opened for India inc. India increased its state growth projections for trade to 10% growth in Exports.

Yes Bank NIMs were a low 3% yet the highly profitable business with a Net Margin continues to shame even private sector feet firmly in players like Indusind (NII of INR 6.75B) and ING in India. New Asia investment banking giants CIMB have meanwhile found an expat to open shop in India with a 60 member team even as US based banks find the business not lucrative yet in M&A and private equity, staying with the newly exploding chinese and other smaller asian debt issuance.

Brokerage volumes could provide impetus for the sector’s cyclical comeback bang this time as F&O trading picks up on better multiple equity options strategies possible to increase healthy volatility in equities series as F&O volumes jump 40% in March. evival of 63 mines including those in the B category flagged as corrupt by the supreme court augurs well for the IIP’s coming back to life after it managed to eke out a positive 0.6% for february without contribution from Mining. Exports and Power and Steel production would also pick up with iron ore production going online making the jump in Steel among others a big dream to follow in 2014, others being a more profitable Marutti from the falling Yen and new export markets for Bajaj (cutting the Europe cord for India inc) giving breathing space for the slow economy hit consumption story for India. Credit data is reported in the next few days with FX reserves data tomorrow a wee risk depending on flows of the gold trade.

ICICI Bank and IDFC have in the last week recovered to INR 1120 and INR 158 respectively and as the F&O discount on the index shows, 5700 might be the top of the range for the bulls but for the rush of data so crucial to the India story on the tap rest of this week and next

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