India Morning Report: 2G Auctions (discounted), Gas Price rise, Markets expiry and CAD data

The markets expiry should probably read F&O exiry but that is just here nor there. CAD(Current Account Deficit) data is as 3.6% of GDP is a very good score with a $17 B surplus admittedly par for the course for Jan — March quarter. Crude basket pricing has gone down to $101 for the year but still leaves a 6% bill hike for the OMCs and oilcos to distribute The resultant price increases if any including the known rise in Gas prices would not exert price pressures on the economy given new inflation levels either. Together that means that if there were buyers for the Rupee they would win. Obviously given the debilitation market punters have handed rupee trade in the imediate three weeks with the exit of INR 200 bln in FII debt positions, the cash positions re lower except at the Reserve Bank which managed to add a few dollars ($2.4 B) to the reserve before getting engulfed by the waterboarding slide uncovered by Ben Bernanke.

So musch for the Rupee and oil. The banks and telcos seem well poised for a recovery though as spectrum buys or no spectrum buys, there is great values at 280 levels in bharti and in RelComm though we never backed the scrip or even Jio infocomm as of now given the Ambani track record and obvious imposition of informal network values on bare minimum corporate governance and a resultant pathetic track record except in petrochem

US will allow more LNG imports to India while the Coal and power situation has also started improving. Chinese increases in consumption are sporadic and are being run by import consumption however in the riorities for the new government and so the US SED with Inia continues to be bland and almost inconsequential to India, a moot question most interested people between 18-40 ( and those just out of that range like us ) significantly continue to question as a fallout of the so called successful reforms since 1991

The rest, once i find a paying sponsor or a working proposition for the second career I start in my 40s

Markets have opened at 5650 and may make a close for expiry around 5700 around the 2:30 m bell though the close per se may find shorts active in that case, as they look at a longer innings in the july series against the virtual non representation in Jun


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