MMTC might be a success but the market is not putting much score by the Fin Min /CEA appearance in the media today while Banks have finally given way after a 45 day wait. One notes the posit by market makers that value retention by the select scrips already counted as good is not doing much for wider portfolios as most had treated this climb as the milestone before the rally and not the rally itself and does no in any way would have resulted in a bubble.
Also the Rupee being stronger yesterday, the overall month long move across currency and equities seems to be trying to compensate the news view that India has survived the move in Asia as was the norm in the oughts or the reform rich period before that and has somehow become a threshold for Emerging markets portfolios as and when dictated by the once a year or fewer occasions of a rupee correction and is unlikely to again preclude the fact or erase the sustenance shown by Indian equities as a class because of the depth of our markets even as Nikkei, Hangseng and Korean markets lose heavily on each currency move because of the less than dozen companies going around for Korea at least and the richness of fixed income portfolios one can safely assume in the bigger markets in Nikkei and Hongkong
The Stanchart reference to inflation risk however remains misplaced as Oil prices are still very unlikely to trend up again
However, staying on the mundane market data for the daily report, Indian equities are losing all expectations of political stability and any positive rally till september as the year’s second half will offer first hope of growth or economic performanceThe import limitation on Gold in the meantime does not impact MMTC plans in Gold and thus strengthens the public channels for Gold trade in India ahead of its disinvestment exercise
Meanwhile FDI flows in China, India and Brazil have been more robust than any other class for all global investors even as Russia scraped the bottom of the barrel bringing the BRIC average growth below 0 for the year. Markets in Asia will continue to lead exits but as the speculative portion from India has been wished away almost immediately, not much move south in bonds or in equities remains and as can be seen in any current charts, Indian yields are down in the same 5 week period and will continue to trend down for the year. Banks, ITC and IDFC remain good investments as also Bajaj Auto, all mentioned except ITC having lost their share of speculative investors / price premiums already.
Shorts on Adani Enterprises are well placed while Gujral again has mentioned buys on Lupin and Cipla / Lupin are real return stories of 2013 from here as Sun Pharma finally pays out 805 of its cash for the settlement with Pfizer/Takeda
- Chidambaram seeks to soothe investors’ nerves (rediff.com)
- India Morning Report: Contracting PMIs in China and the SBI Report (awardz.wordpress.com)
- India’s MMTC to raise Gold refining capacity to 100 tons (mygoldexchange.wordpress.com)
- India Morning Report: Industrial Production revised for March 2013, Gold estoppel for importers (awardz.wordpress.com)
- India Clears Plan Toward Resolving Vodafone Tax Dispute – Bloomberg (bloomberg.com)
- Effective governance can propel growth to over 8%: Chidambaram (news.in.msn.com)
- India Morning Report: Bank shine again yields to Yes Bank and ICICI Bank, IDFC and quality promoters in (awardz.wordpress.com)
- India Morning Report: Rupee crosses over into 2014 range, Growth cycle pumped up? (awardz.wordpress.com)