The cut to 5980 yesterday ( and as i say this Ashwini is reiterating his sells on IT and looking for a good hidden Midcap trade on ET Now) was probably the best the year will offer to DIIs as inflows will also likely return to equity mutual funds after a pretty good 2012 in the second half of this calendar year.
Tata Steel results should not offer much this quarter but Novartis and Pfizer could still throw a surprise our way in the Domestic formulations market growth.
IT companies should see a knee jerk reaction soon on US news and you should stay away though such news could be pre election rowdies for the 2014 Congress. but represent a real risk for Indian IT following the slower renewals and essentially reiterating IT’s strengths a s an annuity business for business that is already in India.
The markets would be aiming for 6100 in this series and looking at good F&O business volumes. More than a straddle trade which no pays to expiry too, one could simply opt for selling puts into profit directly at these levels and building up into the rally we personally do not hold any positions but that is not because of any legal requirements
Banknifty is a great comeback story and though the rush on HDFC Bank make s it look like a defensive play, a habit engendered in the groups stocks and ICICI Bank since foreign investors reached the 74% limit, they remaingood habits of growth and can easily track annualised returns of 30% much like their results and the same may be rewarded almost without question to other private sector performers like Kotak and Yes Bank. indusind could thus be a speculator pick for its performance has already been rewarded but PSU bank exits may not exit sector or find enough float to back plays like CU Bank and Federal Bank.
However, it was no fun watching as gold buyers were instrumental in India reporting a monstrous April 2013 deficit probably taking advantage of the leeward side of trade of April usually and the add on imports of nearly $3.5 B took India’s April imports to $42 B despite regular cuts in yearly import data till march 2013 and imports of oil and crude counting still for more than a third of India Inc’s imports. That meant that deficits for April usually the leanest data at the start of the Financial year were already almost 60% higher at $17 B from less than $11 B in 2012 April.
Still the CPI data for rural and overall series was a 100 points lower at 9.6% and 9.5%
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